WASHINGTON: The administration of US President Donald Trump has warned countries and businesses maintaining commercial ties with Iran that they could face secondary sanctions, while stopping short of immediately imposing the threatened penalties.
Treasury Secretary Scott Bessent described the new pressure campaign as an “economic onslaught” aimed at Iran’s financial networks worldwide, as the conflict between Washington and Tehran approaches its sixth month.
However, Bessent did not identify the countries or institutions that could be targeted or specify when the secondary sanctions would take effect. The US Treasury Department instead announced fresh sanctions against 60 individuals, companies and vessels, without including Chinese financial institutions accused of helping facilitate Iran’s oil trade.
Bessent said Washington was giving businesses and governments time to reduce their exposure to Iran before taking further action.
“We believe it is important to give people a cure period, but they should know that will move very quickly and that we are serious,” he told reporters.
China remains Iran’s largest buyer of crude oil, and the US has stepped up efforts to curb Chinese purchases. Washington has so far avoided imposing sanctions directly on Chinese banks, although Bessent warned that no country would be exempt if its institutions were found to be facilitating transactions that help convert Iranian oil into revenue.
The latest measures targeted businesses in several countries, including China, the United Arab Emirates, Singapore and France. The US also expanded the range of activities potentially subject to secondary sanctions to five sectors of Iran’s economy: digital assets, gold, technology, aviation and shipping.
Bessent said a major sanctions announcement involving a financial institution could come before the end of the week, though the Treasury Department provided no further details.
The prospect of action against Chinese banks comes ahead of a planned meeting between Trump and Chinese President Xi Jinping in Washington in late September. Any move against major Chinese financial institutions could complicate efforts to extend an existing agreement involving Chinese rare-earth exports and US tariffs.
A former US sanctions coordinator, Daniel Fried, said the announcement fell short of expectations but argued that sustained economic pressure was preferable to renewed military confrontation. He said the campaign could take time to produce results and might require diplomatic flexibility from Washington.
The Trump administration says its pressure campaign is aimed at preventing Iran from acquiring a nuclear weapon. The US has imposed sanctions on Tehran for decades, targeting its oil revenues, weapons procurement networks and businesses linked to the Islamic Revolutionary Guard Corps.
Iran, however, has repeatedly adapted to the restrictions by establishing front companies, alternative entities and new vessel registrations to bypass sanctions.
Recent US measures have focused on Iran’s shadow oil fleet, shipping insurers, weapons procurement networks and digital asset exchanges. The Treasury Department says more than 1,000 Iran-related individuals, vessels and aircraft have been sanctioned since Trump began his second term in 2025.
Bessent also singled out Bank Melli, calling for the closure of its overseas branches.
“Every branch of Bank Melli must be shuttered and dark,” he said.
