US announces new sanctions on Iran, threatens to punish countries, entities trading with it

The US has announced a new round of economic sanctions on Iran that are aimed at isolating the country, a move experts say indicates Washington’s failure to subjugate Iran militarily after about seven months of war.

On Monday, Treasury Secretary Scott Bessent disclosed that the US would sever and isolate all economic ties with the countries conducting business with Iran.

He said this at a press conference where he outlined the planned sanctions, described as “Operation Economic Outcast.”

Mr Bessent said President Donald Trump was already making phone calls to world leaders with specific requests to cease trading with the Iranian regime.

“We are level-setting with every country to tell them our expectations. We know who they are. They know who they are, so when the hammer of US Treasury actions falls upon them, they will have no one to blame but themselves,” he said.

Mr Bessent said the US was launching an “economic onslaught” against Iran’s financial connections to sever its economic pipeline “until Tehran stands alone.”

The announcement comes a week after Mr Trump declared that he was preparing to impose the “most crushing economic operation” against Iran.

The Associated Press reported that the sanctions will also target international entities that facilitate Iranian trade related to shipping, oil, crypto, gold, and aviation. 

The Treasury Department also announced that it is sanctioning nearly 60 corporations, individuals and vessels in multiple jurisdictions that it says enable the Iranian regime’s “recklessness.”

That list includes multiple Chinese nationals.

“No one is above the reach of US sanctions,” Mr Bessent said.

However, China, Iran’s largest trading partner, has said it is illegal for its citizens to comply with unilateral US sanctions.

Iran has also denounced the sanctions, stating that it is prepared for an economic war.

The Iranian Economy Minister Ali Madanizadeh, in response to Mr Bessent’s comment, said, “The government is fully prepared for this economic war. You will fail this time too.”

The US war with Iran has now lasted almost seven months.

Last week, the Iran-US MoU, signed on 17 June, expired. It marked the end of a 60-day deadline during which both countries were supposed to end the war and reach an agreement on Iran’s nuclear programme.

Mr Trump earlier demanded that Tehran “put up the white flag of surrender.” He also threatened to make the Strait of Hormuz US territory.

“After we finish defeating Iran, which is being very badly defeated, I’ll be declaring the Hormuz Strait a territory of the United States,” Mr Trump said.

The UAE, a US ally, also announced last week that it was suspending all trade, commercial exchanges, and financial transactions with Iran.