U.S. Treasury Secretary Scott Bessent announced on Monday a campaign to sever Iran’s financial ties to the global economy, imposing sanctions on 60 new entities across digital assets, technology, gold, aviation and shipping. The move marks a shift from prior military-focused pressure under the Trump administration, which is now seeking to isolate Iran economically by pressuring global partners to halt trade.
The sanctions target five key sectors: digital assets, technology, gold, aviation and shipping. Bessent described the initiative as an effort to achieve "economic asphyxiation" of the Iranian regime and warned that "no one is above the reach of U.S. sanctions," including major Chinese banks. Despite widespread speculation about Chinese entities facilitating Iranian oil trade, the initial list did not include any major Chinese firms, and Bessent avoided explicitly naming China or Russia during his remarks.
Iran’s Economy Minister Ali Madanizadeh stated that Tehran was "fully prepared" for the new sanctions, while the U.S. has demanded allies cease economic cooperation with Iran within a set timeline or face unilateral U.S. Treasury action. The administration has also engaged in quiet diplomacy with key partners, including China and Russia, which remain Iran’s largest trading partners but have not yet accepted the new restrictions.
Oil flows through the Strait of Hormuz, a critical chokepoint, remain at a fraction of prewar levels, according to recent data. Iran has previously threatened to further restrict traffic through the strait if its infrastructure is targeted, while also vowing retaliation against expanded sanctions. The Trump administration has reiterated that Iran cannot be permitted to develop nuclear weapons, and the new economic campaign follows the collapse of a June memorandum of understanding between the U.S. and Iran.
Pakistan has acted as a mediator in regional talks, with Interior Minister Mohsin Naqvi reporting "significant progress" during discussions in Tehran aimed at achieving a potential settlement. Iran has stated it will not return to direct negotiations with the U.S. until Washington complies with the terms of the June agreement.
