US widens sanctions in bid to choke Iran’s global revenue streams; China warns of 'escalation'

The United States has launched a sweeping new economic offensive against Iran, expanding its sanctions regime and warning companies and countries around the world that continued business with Tehran could expose them to punitive measures from Washington.

US Treasury Secretary Scott Bessent announced the campaign on Monday, describing it as an "economic onslaught" designed to sever Iran's remaining financial connections with the global economy. The measures include sanctions against nearly 60 Iran-linked individuals, companies and vessels and a broader threat of secondary sanctions against foreign entities continuing significant dealings with Tehran.

The latest action represents a sharp escalation in the Trump administration's pressure campaign against Iran as the conflict approaches the six-month mark. Washington says its objective is to deprive Tehran of revenue and restrict its ability to use international financial, trading and shipping networks.

The administration is targeting five areas considered important to Iran's remaining economic connections — digital assets, gold, technology, aviation and shipping — while continuing its efforts to disrupt Iranian oil exports.

Foreign businesses put on notice

A central feature of the new campaign is the expanded threat of secondary sanctions. Unlike restrictions that primarily prohibit American individuals and companies from dealing with designated entities, secondary sanctions can punish foreign businesses and financial institutions for conducting certain transactions with Iran.

Bessent warned international businesses against continuing to operate in what Washington regards as grey areas of commerce with Tehran. The administration's strategy is intended to force companies to choose between maintaining access to the US-led financial system and conducting business with Iran.

The measures could have repercussions well beyond Iran because the US dollar and American financial institutions remain central to global trade. Losing access to them can create significant commercial difficulties even for companies with relatively little direct exposure to the United States.

Washington has stopped short, for now, of imposing the harshest possible penalties on major foreign institutions maintaining Iranian connections. The administration nevertheless made clear that additional measures could follow if countries and businesses fail to reduce their dealings with Tehran.

Oil and financial networks targeted

Iran's ability to generate revenue from oil exports remains a major focus of US policy. Tehran has spent years developing networks of intermediaries, front companies and vessels to continue exporting petroleum despite extensive Western sanctions.

Washington has repeatedly targeted what it describes as Iran's "shadow fleet" — vessels used to disguise the origin, ownership and destination of sanctioned oil shipments.

The latest sanctions extend that campaign to individuals, companies and ships associated with Iran's nuclear, missile, cyber and petroleum networks. Targets linked to operations across several jurisdictions, including the United Arab Emirates, Hong Kong, China, Singapore, Switzerland and Europe, have come under scrutiny.

China remains particularly important because it is the largest buyer of Iranian oil. Washington's challenge is to squeeze Tehran's energy revenues without creating wider disruption to global energy markets or provoking a major confrontation with Beijing.

Pressure mounts on Iranian economy

The renewed sanctions push comes as Iran's economy is already under severe strain. The Iranian rial has fallen to record lows, while inflation and restrictions on international commerce have added pressure on households and businesses.

The Trump administration believes further financial isolation can weaken Tehran's ability to sustain its military and nuclear programmes and ultimately force the Iranian leadership to alter its policies.

Iran, however, has lived under varying degrees of American economic restrictions for decades and has developed mechanisms to circumvent them. Previous sanctions campaigns have disrupted trade and increased costs for Tehran but have not entirely prevented it from exporting oil or accessing overseas markets.

That history means the success of the latest campaign is likely to depend heavily on whether Washington can persuade — or compel — third countries and their companies to enforce the restrictions.

Economic pressure replaces immediate escalation

The administration is presenting the new sanctions as a means of intensifying pressure without immediately resorting to another major military escalation.

At the same time, tensions remain high over the Strait of Hormuz, a critical route for global energy shipments. Any disruption to shipping through the waterway could have consequences for international oil supplies and prices.

The sanctions therefore add another layer to an already volatile confrontation. Washington is attempting to isolate Tehran economically while preserving leverage for possible negotiations, but the widening threat of secondary sanctions risks drawing other countries and businesses more directly into the dispute.

For Iran, the immediate challenge will be preserving the trade and financial channels that remain open. For the United States, the test will be whether its expanded economic campaign can inflict sufficient pressure on Tehran without producing wider disruption to global trade and energy markets.