US threatens secondary sanctions against Iran's trading partners

US Treasury Secretary Scott Bessent said on Monday that Washington is demanding Iran's trading partners halt all economic engagement with the Islamic republic, threatening sanctions against those who fail to comply. He stated that any form of economic interaction with the regime would expose those involved to the full force of the United States.

Bessent said the Treasury Department has identified the hubs, intermediaries and networks Iran has used to smuggle oil and evade sanctions. Sanctions could target more than 60 legal entities and individuals, as well as cargo ships worldwide, through which Tehran obtained nuclear and missile technology, oil-trade revenues, and conducted cyber operations.

The secretary did not specify which of Iran's partners would be added to the blacklist. Asked about the likelihood of sanctions against China, considered the main buyer of Iranian oil, he stressed that no one should test Washington's resolve.

Deadlines and consequences

Teams from the Treasury Department, the State Department and the Department of Defense are staying in contact with partners around the world and will give each country deadlines to end certain Iran-related activities. Bessent said appropriate measures would follow if these demands are not met, though no specific deadlines or planned actions were disclosed. He added that any institution allowing Iran to launder money would be cut off from the US dollar system. Washington plans to announce sanctions against one financial institution by the end of this week.

Following the press conference, the US Treasury announced the possibility of secondary sanctions against countries and organizations operating in five economic sectors: digital assets, technology, gold, aviation and shipping.

Iran's parliament speaker, Mohammad Bagher Ghalibaf, expressed confidence that the new US measures would fail, saying Iran's trading partners had made clear they would not heed Washington's statements. No visible progress has been seen in recent weeks in the Washington-Tehran standoff. Six months after the start of the US and Israeli war against Iran, there has been no progress in efforts to halt Iran's nuclear program, nor has an agreement been reached on resuming shipping through the Strait of Hormuz, which is critical to global trade in oil, gas and fertilizers.