What are Trump's options as US eyes 'never been seen' sanctions on Iran?

President Donald Trump has threatened to impose unprecedented economic sanctions on Iran, as treasury secretary Scott Bessent indicated measures unseen before would be in place within the next week. Iran has been under various sanctions since the late 1970s, with the US, UN, and EU frequently implementing embargoes and freezing assets. In the wake of the US and Israel's war on Iran, Washington has introduced additional maritime, energy, and financial sanctions, as well as a naval blockade.

Iran has denounced the US plans for new sanctions and warned countries against participating in the economic war against the nation. Moheb Rezai, head of Iran's supreme national security council, declared in Iranian television that any country collaborating in restricting economic ties with Iran would be considered an enemy.

Experts suggest that the Trump administration might employ several strategies to further pressure Iran. China accounts for a quarter of China's refinery capacity, absorbing 80% of Iran's shipped oil. Smaller China- and Hong Kong-based entities have been targeted by OFAC with secondary sanctions, but larger Chinese banks have not been publicly designated despite warnings.

Targeting these banks or introducing additional sanctions could potentially impact larger financial institutions, although there could be retaliation from Beijing.

The administration could also continue targeting individuals and entities in China and the Gulf that facilitate Iran's evasion of sanctions. Additionally, US efforts may include targeting others involved in Iran's acquisition of weapons, freezing further amounts of US$500 billion in Iran-linked cryptocurrency, and imposing aviation sanctions to limit Iran's trade.

A land blockade, requiring assistance from the Iranian nation's neighbors, is another possible option. However, experts believe this would be challenging to execute and might not induce internal pressure or protests. Lastly, the Senate recently passed a bill providing Trump with new tariff powers, which he could potentially use against countries aiding Iran's commerce and weapons procurement.