"Economic Asphyxiation": US Announces New Sanctions Campaign Against Iran

On August 25, US Treasury Secretary Scott Bessent outlined plans for the "economic asphyxiation" of Iran, expanding the secondary sanctions threats and warning of severe consequences for countries that do not join the campaign. This announcement follows almost six months of a stalemate in the war on Iran, with stalled peace talks and Tehran blocking most traffic through the vital Strait of Hormuz.

Bessent declared an "economic D-Day" on Iran, stating that the United States aims to sever every economic lifeline that sustains the regime until Tehran stands alone. He added that countries not joining US sanctions would "share" in Iran's isolation. The Treasury Department announced expanded secondary sanctions targeting Iran's digital assets, technology, gold, aviation, and shipping sectors, as well as new sanctions against 60 individuals, companies, and vessels involved in oil revenue generation, weapons procurement, and cyber operations.

Iran dismissed the threat, predicting another defeat for Washington, and its economy minister noted that decades of sanctions have not stopped the country from evading restrictions. Iran has been exporting millions of barrels of oil, mostly to China, before the war. Bessent warned that any entity facilitating money laundering on behalf of Iran will be removed from the US dollar system, emphasizing that no one is above the reach of US sanctions.

The US naval blockade of Iran has resulted in a significant drop in oil exports via the Strait of Hormuz, from two million barrels a day to just 0.4 million barrels, according to maritime tracker Kpler.