US expands Iran sanctions in ‘economic D-Day’ as countries warned over trade ties

Treasury Secretary Scott Bessent warned on Monday of an expanded range of secondary sanctions against nations engaging in trade with Iran. He made clear his intention to avoid destabilizing the global financial system, emphasizing the need for countries to cease their interactions with the Iranian regime. The administration is pressuring foreign leaders to take specific actions to cease their dealings with Iran, granting them a defined time frame to halt the identified activities.

These activities encompass the digital asset, technology, gold, aviation, and shipping sectors. While Chinese banks aiding in Iranian transactions were not named, Bessent hinted at future potential sanctions against them. The Treasury Secretary did not rule out targeting these Chinese banks in the future, but did tease a significant announcement regarding a sanctioned financial institution by the end of the week.

Also on Monday, officials sanctioned nearly 60 entities, including a network of brokers, companies, and shadow fleet vessels across various countries that assist Iran with oil sales. They also suspended general licenses for remittance payments to Iran. This development comes amid the administration's efforts to curb inflation heading into the November elections, including suspending tariffs on beef imports and ramping up bond buybacks, which have had limited success in lowering borrowing costs.

Treasury Secretary Bessent noted that the first bond buyback has not yet taken place, with the next scheduled for September 9th.