US Hits Iran with New Sanctions, Warns Trading Partners

The US has announced new economic sanctions on Iran. These sanctions aim to isolate the country. Experts believe this shows that the US is struggling to defeat Iran militarily after about seven months of war.

On Monday, Treasury Secretary Scott Bessent explained that the US would cut all economic ties with countries doing business with Iran. He shared this during a press conference about the planned sanctions, which he called "Operation Economic Outcast."

Mr Bessent mentioned that President Donald Trump is already calling world leaders. He is asking them to stop trading with the Iranian government.

"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 added that the US is launching an "economic onslaught" against Iran's financial ties. The goal is to cut off its economic pipeline "until Tehran stands alone."

This announcement follows Mr Trump's declaration last week that he was ready to impose the "most crushing economic operation" against Iran. The Associated Press reported that the sanctions will target international groups that help with Iranian trade, including shipping, oil, cryptocurrency, gold, and aviation.

The Treasury Department also revealed that it is sanctioning nearly 60 companies, individuals, and vessels in various areas that it claims support the Iranian government's "recklessness." This list includes several Chinese nationals.

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

But China, which is Iran's biggest trading partner, insists it is illegal for its citizens to follow US sanctions. Iran has also rejected the sanctions, saying it is ready for an economic war.

Iranian Economy Minister Ali Madanizadeh responded to Mr Bessent’s comments. He 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 Memorandum of Understanding, signed on June 17, expired. This marked the end of a 60-day period for both countries to end the war and agree on Iran’s nuclear program.

Mr Trump had 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 stopping all trade, commercial exchanges, and financial transactions with Iran.