US Sanctions Deepen Economic Pressure on Iran
At a Glance
- New US sanctions are adding pressure to Iran’s already strained economy.
- Long queues have formed at petrol stations in Tehran amid fears of rising prices.
- Washington says it aims to cut Iran’s economic lifelines and isolate Tehran further.
- Iran has dismissed the measures while warning of another US defeat.
The United States has expanded economic pressure on Iran as a six-month war reaches a military stalemate, with peace talks stalled and disruptions continuing around the Strait of Hormuz.
Key Statements and Focus Area
- US Economic Strategy: “The objective is to sever every economic lifeline that sustains this tyrannical regime.” - US Treasury Secretary Scott Bessent.
- Iranian Response: “Another defeat," Iranian Economy Minister Ali Madanizadeh, describing Tehran’s expected outcome of the US sanctions campaign.
- Chinese Position: “Take all necessary measures to firmly safeguard its own rights and interests.” - Chinese government, opposing the new US sanctions.
Long queues formed at petrol stations in Tehran on Tuesday as residents expressed concern that the latest US measures could further affect daily life and prices.
The new sanctions come as Iran continues to deal with high inflation, economic restrictions, and the wider effects of the ongoing war. Realtor Mehdi Yazdian, 55, said sanctions affect people across income groups and called on authorities to control prices. He said Iranians had already lived under sanctions for decades and remained resilient despite their impact.
The US Treasury Department has expanded secondary sanctions targeting Iran’s digital assets, technology, gold, aviation, and shipping sectors. It also imposed new measures against 60 individuals, companies, and vessels accused of supporting Iran’s oil revenues, weapons procurement, and cyber operations.
The measures affect entities in several countries and territories, including the United Arab Emirates, Hong Kong, China, Singapore, and Europe.
Bessent said countries that refuse to support the US campaign would “share in the isolation” of Iran. He also said US President Donald Trump was contacting world leaders to press them to halt interactions with Tehran. Bessent did not exclude sanctions against Chinese banks and warned that entities facilitating money laundering for Iran could lose access to the US dollar system.
China, one of Iran’s major oil customers, opposed the new sanctions and said it would take measures to protect its interests. The position creates another potential point of tension between Washington and Beijing as the US seeks broader international cooperation in its campaign to restrict Iran’s economy.
Iranian officials have rejected the latest measures, saying the country has prepared for prolonged economic pressure. Economy Minister Ali Madanizadeh said Tehran had anticipated the US plans and had developed a two-year strategy to manage the consequences. Iran has spent decades operating under sanctions and has developed international financial networks to circumvent restrictions.
Tehran-based economic expert Saeed Laylaz said the latest measures largely continue the US “maximum pressure” approach, arguing that Washington has already used many of the economic tools available to it. However, he questioned whether Iran’s internal economic management would be capable of addressing challenges including corruption, banking imbalances, and inflation, as well as implementing timely financial and monetary policies.
FYI
Iran has faced extensive international sanctions for decades, forcing its economy to develop alternative trade and financial channels. The latest US measures seek to intensify those restrictions by targeting sectors connected to Iran’s revenue generation, trade, and access to international financial systems.
The economic pressure is unfolding alongside a broader crisis involving the war, stalled peace talks, and disruption around the Strait of Hormuz, a crucial route for global energy shipments.
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