Join new Iran sanctions or leave the dollar system: Bessent

US Treasury Secretary Scott Bessent announced an expansion of sanctions on Iran, aiming to cut off the country's economic lifeline. According to Bessent, countries that continue to do business with Iran risk being forced out of the dollar-based financial system. The new sanctions target 60 individuals, entities, and vessels, but do not include any Chinese financial institutions suspected of facilitating Iran's oil trade.

The announcement comes amid heightened tensions between the US and Iran, with the US seeking to pressure Tehran to end its military actions. Iranian Economy Minister Ali Madanizadeh said the country is fully prepared for the US sanctions, stating that Iran has its own tools to respond. Iran has threatened to retaliate against the expanded sanctions, with possible military responses and further reductions in oil exports.

Oil prices saw a marginal increase on Tuesday following the announcement, with Brent crude futures up 6 cents to $92.16 a barrel and US West Texas Intermediate crude up 15 cents to $85.12. The US has given countries time to comply with the new directive, but has not specified which countries will be targeted or when the penalties will take effect.

Brief written by urgent.news from Asia Times, The Hindu, The Economic Times - Top News, Al-Monitor, The Jakarta Post — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.