US says new sanctions aim to block all of Iran's sources of income

WASHINGTON (AP) — U.S. Treasury Secretary Scott Bessent announced a new round of sanctions against Iran on Monday, warning all countries doing business with the Islamic Republic to cut those financial ties or face retaliation from Washington.

President Donald Trump's promise last week to unleash an economic "D-Day" against Tehran turned out to be a new series of warnings to isolate Iran from the rest of the global economy. When asked why the United States was not imposing secondary sanctions on the Iranian government's trading partners, Bessent told reporters he wanted countries to have a chance to distance themselves from Iran before it was too late.

"Why would I want to blow up the global financial system?" Bessent asked.

The Trump administration is struggling to find a way out of nearly six months of an unpopular war against an increasingly defiant Iran. A depletion of key weapons stockpiles appears to have forced U.S. officials to pivot toward economic warfare, though Defense Secretary Pete Hegseth later noted he did not rule out resuming strikes against Tehran during a pause in hostilities.

Washington had promised that the new sanctions would put even more pressure on an Iranian economy already battered by previous punitive measures and a U.S. naval blockade.

But Monday's announcement offered few details and gave no indication of which countries could face secondary sanctions. China, Turkey and the United Arab Emirates are Iran's largest trading partners.

"We are making the rules of the game clear to each country to communicate our expectations. We know who they are. They know who they are," Bessent said. "So when the weight of U.S. Treasury measures falls on them, they will have no one to blame but themselves."

Bessent said the campaign is called "Operation Economic Pariah," and noted that Trump has been "making phone calls to world leaders with specific requests to cease their interactions" with Iran, and has already seen results.

The United Arab Emirates announced last week that it was suspending all trade, commercial exchanges and financial transactions with Tehran until further notice following an alleged missile attack against the Gulf country. Bessent indicated that the UAE's decision "was not a coincidence."

Shortly before the announcement, Iranian Parliament Speaker Mohammad Bagher Qalibaf said the United States is not in an economic position that would allow it to further restrict Tehran's relations with other countries.

"Iran's trading partners, both through the media and through messages they have sent us, have made it clear that they do not take these statements into account at all," Qalibaf posted on the social network X. He has been Iran's chief negotiator over the past six months.

Bessent is questioned about what the new campaign means for China. When asked whether Washington would target China, Bessent replied that "no one is beyond the reach of U.S. sanctions," despite the fragile trade truce currently in place between the world's two largest economies.

"If they facilitate transactions and are part of the ecosystem that converts Iranian oil into money, into repression, they will be a target," he added.

Some experts say Washington is likely to carefully calibrate its actions toward Beijing, less than a month before Chinese ruler Xi Jinping's planned visit to the United States.

How much the announcement "depends on how aggressively President Trump is willing to enforce it," said Ali Wyne, senior research and advocacy adviser for U.S.-China relations at the International Crisis Group, a non-governmental organization focused on resolving armed conflicts. "So far, despite threatening severe economic consequences to countries that do business with Iran, he has largely turned a blind eye to China."

The Treasury Department said Monday it was imposing sanctions on nearly 60 entities linked to Iran, accusing them of playing roles in the country's nuclear and missile programs, as well as in cyber activities and oil shipments.

That includes Hong Kong-based Sweet Ocean Industrial Limited and associated individuals and companies, who were accused of helping Tehran acquire sensitive goods, such as laser optics equipment. Also sanctioned was Shenzhen-based Huamei, a service provider for Iran-based logistics company BRE Line, as well as BRE Line's Hong Kong branch, for allegedly supporting the missile and nuclear programs.

**Iran's currency hit a new all-time low on Monday.** Hours before Bessent's announcement, Iran's currency reached a historic low.

The rial fell to 2.02 million per U.S. dollar at the open of trading in currency markets. The official rate of Iran's Central Bank stood at approximately 1.5 million rials per dollar, but most Iranians pay the market rate.

The currency was already under pressure even before the United States and Israel attacked Iran on February 28, with double-digit inflation and negative growth. The rial has been hitting new all-time lows throughout nearly six months of war, which have taken an even greater toll.

Iranians are finding basic goods increasingly unaffordable. Since the war began, rice has risen approximately 60%, and beef prices have surged more than 150%. The International Monetary Fund forecasts that GDP will contract by more than 5%.

Even so, economic pressure has yet to translate into political pressure. Iran retains a strategic advantage: its attacks and threats against ships in the Strait of Hormuz have caused traffic through the waterway to grind almost to a complete halt, harming the global economy and piling pressure on Trump ahead of the midterm elections.

As a result, the war has become a struggle for control of the strait, through which in peacetime one-fifth of the world's traded oil passed before the conflict. Iran now refuses to allow its full reopening unless it can charge ships a toll.

According to some reports, Iran and Oman—located on opposite sides of the strait—are in the final stages of an agreement on a joint management plan for the waterway. Oman's Foreign Minister is scheduled to travel to Iran on Tuesday.

A Pakistani delegation visits Iran. Pakistan, which played a key role in brokering a 60-day ceasefire in June, sent a high-level delegation to Iran on Monday to encourage Washington and Tehran to return to negotiations, two senior officials indicated. Both spoke on condition of anonymity because they are not authorized to speak to the media.

The armed forces only confirmed the visit of Field Marshal Asim Munir, stating that its objective was to reduce tensions in the region.

Trump spoke with Munir before the army chief's visit to Iran, according to a person familiar with the conversation, who spoke on condition of anonymity to confirm a private conversation. Reuters first reported the call, citing Pakistani sources.

Munir met in Tehran with Iranian Interior Minister Eskandar Momeni, according to the two senior officials. Munir was accompanied by Pakistani Interior Minister Mohsin Naqvi and other officials. Munir was expected to spend the night in Iran and meet with the Iranian president and other senior officials before returning to Pakistan.

His previous visit to Tehran in May helped pave the way for a memorandum of understanding signed by the United States and Iran in June.

In the center of the Iranian capital, Sadegh Mahmudi, 73, holds no hope for a resolution. He joined a line of about twelve people to buy U.S. dollars with his remaining savings in order to protect himself against further drops in the local currency.

"There is no hope of a deal or of peace," he stressed.

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