US unveils 'economic D-Day' against Iran, warns trade partners of sanctions

The US has unveiled an expansion of economic sanctions against Iran, aimed at cutting off the country's economic lifeline. US Treasury Secretary Scott Bessent announced the measures on Monday, warning countries that continued trading with Iran would risk being forced out of the dollar-based financial system. According to The Hindu, Bessent did not identify the countries that would be targeted or reveal when the penalties would take effect, giving them time to comply with the new directive.

Iran has promised to retaliate against the expanded sanctions. Iranian Economy Minister Ali Madanizadeh said, “We are fully prepared for the U.S. sanctions.” The country expressed confidence that major trading partners would resist Washington's pressure campaign. Before the announcement, Iran threatened both a possible military response and further reduction in oil exports from the Gulf in response to any U.S. economic measures.

The new sanctions target 60 individuals, entities, and vessels, but do not include any Chinese financial institutions suspected of facilitating Iran's oil trade, as reported by The Hindu. Oil prices gained marginally on Tuesday after falling more than 2% in the previous session, as investors weighed the impact of the tougher U.S. secondary sanctions on Iran, according to The Economic Times. US Defense Secretary Pete Hegseth said on Monday that Washington would not rule out using military force against Iran.

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