U.S. Treasury Secretary Scott Bessent told The Associated Press on Sunday that the Trump administration plans to impose sanctions on another bank this week as part of an effort to economically isolate Iran. Bessent stated that the U.S. intended to use economic pressure to stop specific transactions, noting that officials are monitoring the identities of those involved in the trade.
The announcement comes as the administration signals a shift in strategy from military strikes toward economic measures, a transition officials have labeled \"economic D-Day.\" This policy change coincides with the six-month mark of an ongoing war and follows decades of existing sanctions against Iran. Despite the stated shift in strategy, U.S. forces struck Iranian rocket launchers on the Strait of Hormuz on Sunday, ending a month-long pause in military actions.
Bessent spoke ahead of attending Group of 20 (G20) meetings in Asheville, North Carolina, where he is scheduled to meet with representatives from other major economies to seek cooperation regarding Iran. A key focus of these discussions will be China, Iran's largest trading partner and primary oil purchaser. While the administration issued a proposed rule on Friday to sever the U.S. financial access of the United Arab Emirates branches of Banque Misr, Egypt's second-largest bank, it has not yet applied full sanctions to major partners like China or India.
The scale of this economic campaign involves major economies, specifically the G20 members meeting in Asheville. The policy places pressure on China, Iran's largest oil buyer, with Bessent stating that \"all options are on the table\" regarding potential sanctions against Beijing. Bessent noted that China and the U.S. share an interest in reopening the Strait of Hormuz and preventing Iran from acquiring nuclear weapons.
Iran has vowed to retaliate for the Sunday military strikes. The next steps in the economic campaign depend on the finalization of the proposed rulemaking regarding Banque Misr and the outcome of Bessent’s meetings at the G20. The specific sanctions mentioned by Bessent are expected to be announced during the current week.