Even More Maximum Pressure on Iran

Treasury Secretary Scott Bessent announced the latest tool for "economic asphyxiation" of Iran, which are secondary sanctions targeting countries, individuals, or entities that do business with Iran. However, Bessent declined to name China and Russia as chief offenders, explaining that the administration was giving a "bureaucratic grace period" before the sanctions are imposed.

Secondary sanctions have been a "very powerful tool," but the administration has repeatedly threatened their use without following through. The rise of secondary sanctions comes after the administration announced it was "restoring maximum pressure" on Iran by tightening sanctions and driving down Iranian oil exports. Despite their warnings, China and Russia have shown little inclination to help the United States achieve its goals, and their economies could actually benefit from prolonged U.S. military action in Iran.

So far, the administration's threats have yielded some results, with the United Arab Emirates stopping all trade and financial transactions with Tehran. However, other countries, including China and Russia, have not complied with the administration's demands. The administration's use of secondary sanctions as a threat is an economic gamble with potentially far-reaching consequences.