Washington is sharpening its financial weapons against Tehran, with US Treasury Secretary Scott Bessent unveiling what he called a strategy of “economic asphyxiation” aimed at cutting off Iran’s access to money and trade — and warning that countries refusing to participate could face consequences of their own.
Mr Bessent’s remarks came almost six months into a war on Iran that has settled into stalemate, with peace talks stuck and Iran blocking most traffic through the strategically vital Strait of Hormuz.
“Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Mr Bessent told a press conference.
He added: “We are going to hold everyone accountable, and this is economic asphyxiation of this regime. We are launching an economic onslaught against Iran’s financial connections around the globe.”
Watch: US sanctions on Iran ‘economic asphyxiation’ – Bessent
The US Treasury Department said it has traced the networks, facilitators and financial routes Iran relies on to smuggle oil and dodge existing sanctions.
It said the United States would coordinate with partners to go after any source of Iran’s “illicit revenue”, widening the net beyond traditional oil sales.
Mr Bessent said countries that choose not to align with the US measures would “share in the isolation” imposed on Iran.
He said US President Donald Trump has been phoning world leaders to press them to halt dealings with Tehran.
Iranian foreign ministry spokesman Esmaeil Baqaei warned that participation would “definitely have its own consequences”.
The Treasury Department said it has “issued determinations against five critical sectors – digital assets, technology, gold, aviation, and shipping – that the Iranian regime uses to try to prop up its failing economy”.
Iran has threatened to stop all oil exports from the region if the US goes ahead with its plan
Mr Bessent also said any entity “that facilitates money laundering on behalf of Iran will be removed from the US dollar system”, underscoring the central role the dollar plays in global finance.
Asked whether Chinese banks that do business with Iran could be hit, Mr Bessent replied that “no one is above the reach of US sanctions”.
Earlier, he described the new push as an “economic D-Day” against Iran in a column for the Financial Times.
The United States and Israel triggered the Middle East war with a massive wave of bombing against Iran on 28 February, prompting Iranian retaliation across the region.
Oil exports plunge
The US naval blockade of Iran has driven a steep drop in exports through the Strait of Hormuz, with volumes falling from two million barrels a day before the war to 0.4 million by mid-August, according to maritime tracker Kpler.
Iran has faced punishing international sanctions for decades. Those restrictions briefly eased under the 2015 nuclear deal, before Mr Trump later withdrew from the agreement and reinstated pressure as part of a “maximum pressure” campaign.
Despite years of sanctions, the Islamic republic had managed to endure — and before the war it continued exporting millions of barrels of oil, largely to China, while evading restrictions through intricate international financial channels.
For many Iranians, the latest confrontation is expected to mean deeper hardship after years of high inflation — pressures that in December and January helped ignite mass anti-government protests.
Sarah Hassanbeigi, a 32-year-old pharmacist in Tehran, described the mood bluntly: “It’s really very difficult. I don’t think people can really take this much longer.”
Yesterday, Iranian President Masoud Pezeshkian acknowledged the strain, saying the country faced “many problems in society”.
“We are striving with all our hearts to overcome inflation, livelihood problems, unemployment, and to secure the future of the people, so that they can live with dignity and pride,” Mr Pezeshkian said.
Delegation from Pakistan
Last week, Mr Pezeshkian — seen as a relative moderate — said Tehran should “bring the war to an end now as we are in a position of power and dignity”.
His comments came after supreme leader Mojtaba Khamenei installed hardliners in key security posts.
Ms Hassanbeigi said she hoped for peace and argued negotiations require concessions. “Naturally, negotiations mean that both sides have to compromise. My personal opinion is that Iran should compromise now,” she told AFP.
Diplomatic efforts have continued throughout the war, with mediators pushing for a negotiated settlement.
Today, Pakistan’s army chief was expected to visit Iran. Islamabad played a central mediating role in talks that produced an April ceasefire, which later collapsed.
Omani Foreign Minister Badr al-Busaidi was also scheduled to travel to Iran tomorrow, as Muscat and Tehran pursue an agreement on regulating transit through Hormuz.
