US Treasury to broaden scope of secondary sanctions on Iran, source says

The US Treasury is set to broaden the scope of secondary sanctions on entities and countries that maintain business ties with Iran. According to a source familiar with the plans, this move aims to increase economic pressure on Tehran. The new sanctions, described by Treasury Secretary Scott Bessent as an "economic D-Day," are expected to be announced on Monday.

Iran has warned that it will respond harshly to the expanded sanctions. Foreign Ministry Spokesperson Esmaeil Baghaei said that "Iran will use all its bilateral capabilities to confront US economic sanctions." He also stated that "any escalation of this situation will undoubtedly bring about consequences" and that "our hands are not tied." The new head of Iran's top security body has also warned that Tehran will see any country's support for the sanctions as an "act of war."

The announcement of fresh sanctions has contributed to a fragile market backdrop, with investors adopting a wait-and-see approach ahead of the announcement. According to Fortune, Israeli and Syrian officials met less than a week after Israeli strikes in Syria, and Israel said it killed a Hamas commander in Gaza.

Brief written by urgent.news from Al-Monitor, FXStreet, Fortune, NPR, Quartz — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.