The U.S. Treasury Department is expected to expand secondary sanctions against countries and entities that conduct business with Iran, according to a source familiar with the matter. The action, scheduled for announcement on Monday, aims to increase economic pressure on Tehran following a six-month conflict that has disrupted energy exports through the Strait of Hormuz. U.S. Treasury Secretary Scott Bessent is slated to detail the plan during a 1 p.m. EDT press conference.
The U.S. has maintained long-standing sanctions against Iran targeting its oil revenue, aviation sector, weapons procurement, and business enterprises linked to the Islamic Revolutionary Guard Corps. While these measures bar designated entities from the dollar-based financial system, officials report that Iran has frequently used front companies and new vessel registrations to bypass restrictions. The new measures are designed to identify additional categories of conduct that would trigger penalties, making it easier to target those facilitating transactions.
According to a source, the Treasury will warn international entities to sever ties with Iran or risk losing access to the U.S. financial system. A senior administration official stated that the Treasury has mapped Iran's oil-smuggling networks and will present this data to countries aiding in sanctions evasion as a final warning. While the U.S. has recently sanctioned smaller Chinese refineries, it has not yet sanctioned major Chinese banks, a move that could affect a standing trade truce between Washington and Beijing.
The scale of this policy involves the potential monitoring of entire Iranian economic sectors, where the Treasury source indicated that any activity—even if conducted in a third country—could become subject to penalties. While the U.S. currently allows specific licensed transactions for medicine, medical devices, and agricultural goods, a senior official warned that remaining "financial lifelines" must be shut down. This could force foreign businesses to choose between the Iranian market and the U.S. market, potentially impacting billions of dollars in global energy and manufacturing trade.
A person would likely notice the impact of these sanctions through changes in global energy markets and diplomatic relations. Oil prices were reported to have fallen on Monday in anticipation of the announcement. Furthermore, the decision on whether to sanction Chinese banks could influence a scheduled meeting between President Donald Trump and Chinese President Xi Jinping in late September. A breakdown in relations could affect a November 2024 agreement regarding Chinese rare earth exports and U.S. tariffs, which influences the cost of electronics and industrial components in the U.S. Following the 1 p.m. announcement, the next key dates involve the diplomatic summit in late September and any subsequent enforcement actions against foreign refineries or banks.