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U.S. Treasury to widen secondary sanctions on Iran, source says

Expansion targets entities and countries maintaining ties with Tehran amid six-month blockade of Strait of Hormuz. Treasury Secretary Bessent to detail measures at 14:00 Brasília time press conference.

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Sophie Laurent · FX & Rates Desk · 25 Aug 2026 · 00:35 · 1 min read
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U.S. Treasury to widen secondary sanctions on Iran, source says

The U.S. Department of the Treasury is set to broaden the scope of secondary sanctions against entities and countries that continue commercial dealings with Iran, according to a source familiar with the matter. The move is part of an intensified economic pressure campaign led by the Trump administration to compel Tehran to end a six-month blockade of the Strait of Hormuz, which has disrupted energy exports from the Persian Gulf.

Treasury Secretary Scott Bessent is scheduled to outline the expanded measures during a press conference at 14:00 Brasília time on Monday. The announcement will emphasize that countries failing to align with U.S. policy risk exclusion from the dollar-based financial system, including restrictions on major corporations and state-linked entities.

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The campaign, described by President Donald Trump and Bessent as an "economic D-Day," aims to deliver a final warning to global partners to sever economic ties with Iran. The Strait of Hormuz remains a critical chokepoint for oil shipments, with the prolonged blockade exacerbating regional energy market volatility.

The Treasury’s action follows months of escalating tensions, during which the U.S. has sought to isolate Iran economically while maintaining pressure on its regional proxies. The expanded sanctions framework is expected to target a wider range of sectors, including financial institutions, shipping companies, and energy traders engaged in transactions with Iranian entities.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

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