Iran war news Highlights: US launches ‘economic onslaught’ to cripple Iran - Countries face deadline to cut Iran ties

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Iran parliament speaker and chief negotiator Mohammad Bagher Ghalibaf dismissed the latest US economic threats as “bluster” on Monday. He said Washington lacked the economic leverage to further restrict Iran’s ties with other countries, adding that Tehran’s trading partners had told Iran they attached little importance to the threats.

The United States is launching an “economic onslaught” against Iran’s global financial connections under a campaign called “Operation Economic Outcast,” Treasury Secretary Scott Bessent said on Monday.

“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said at a news conference in Washington.

“America is no longer managing the Iranian threat. We are ending it,” he said, adding that Iran faced two choices: “complete global isolation and a subsistence economy” or “a path back to normalcy with an opportunity to rejoin the global economy.”

Bessent said the Treasury had “mapped every node, every facilitator and every network that Iran has used to smuggle oil and evade sanctions.”

He said the campaign would intensify each day and “will not end until this regime stands alone.”

US Treasury Secretary Scott Bessent has spent the past 10 days building up expectations for an “economic D-Day” against Iran, but Washington already has extensive secondary sanctions targeting countries that trade with Tehran, particularly its oil sector.

The challenge has been enforcement. The US, including the current administration, has only partially enforced those measures.

For the new campaign to have a significant impact, Washington will need to rally Western allies behind a coordinated enforcement effort. It would also have to confront countries including China, Russia, India, Pakistan and Turkey that continue to trade with Iran.

US Treasury Secretary Scott Bessent did not set a deadline for countries and entities to comply with expanded sanctions on Iran, but warned that Washington’s patience was limited.

“I'm not going to set a timeline, but we do not have infinite patience here,” Bessent said.

Asked whether China would be covered by the initiative, Bessent said: “No one is above this.” He described the measures as “economic asphyxiation of this regime” and warned that countries should not test Washington’s resolve.

US officials said expanded “secondary” sanctions are expected to remain the main tool against Iran until at least after the midterm elections.

They said a new military campaign against Tehran could come back into consideration after the elections, depending on how the situation develops.

US Secretary of Treasury Scott Bessent said it’s “no longer acceptable to operate in the gray spaces” of the conflict.

He did not name what countries could face potential secondary sanctions from the United States, but China, Turkey and the United Arab Emirates are Iran’s largest trade partners.

“Let there be no ambiguity as to the position of the United States,” Bessent told the press conference.

US Secretary of Treasury Scott Bessent announcing an economic pressure campaign against Iran said the US would target all of Iran’s sources of revenue, including from oil.

“Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” he said.

Bessent issued a stark warning to companies and institutions that continue doing business with Iran.

He said economic engagement of any kind with Iran could expose those responsible to the “full reach of American power.”

Bessent said countries would have a finite timeline to shut down activities identified by the US Treasury as supporting Iran.

The measures could include closing branches of Iranian banks operating overseas, further restricting Tehran's access to the international financial system.

US President Donald Trump is personally contacting world leaders as Washington steps up pressure on Iran, urging countries to sever economic ties with Tehran, US Treasury Secretary Scott Bessent said.

Bessent said Trump is making phone calls to foreign leaders with specific requests to end their economic interactions with Iran.

Treasury Secretary Scott Bessent said Washington is targeting Iran’s financial connections worldwide.

Bessent said the US aims to “sever every economic lifeline” supporting Tehran.

The strategy seeks to leave the Iranian regime increasingly cut off from the global financial system.

Bessent said the Treasury has mapped Iran’s networks used to evade sanctions and move oil.

Oil-smuggling networks targeted:

The US says it has identified the networks and facilitators helping Iran smuggle oil.

Bessent said Treasury has mapped “every node, every facilitator and every network” linked to Iran’s sanctions evasion.

The plan signals a wider US effort to disrupt Iran’s international financial and commercial networks.

US Treasury targets entities linked to Iran’s nuclear, missile, cyber and oil networks.

The Treasury announcement came before Secretary Scott Bessent was due to outline the administration’s broader Iran financial campaign.

Sanctions hit broker companies linked to vessels in Iran’s “shadow fleet” across the UAE, Hong Kong, China, Singapore, Switzerland and Europe.

Washington is targeting Iran-linked activities involving digital assets, technology, gold, aviation and shipping.

The measures could expose companies and entities doing business with Iran to secondary sanctions.

The US has suspended general licenses that previously allowed certain remittance payments to Iran.

The latest measures expand Washington’s campaign to restrict Iran’s access to international finance and trade. (Reuters)

China, widely regarded as Iran’s largest oil customer, rejected Washington’s pressure campaign.

Chinese Foreign Ministry spokesperson Lin Jian said Monday that sanctions and additional pressure “will not help resolve the issue.”

“They will only exacerbate tensions and escalate the situation, which is in no one’s interest,” Lin said.

He urged all parties to avoid measures that could deepen disputes, intensify conflict or disrupt global economic and financial stability.

China had been importing more than 80% of Iranian oil before the US-Israeli war, making Beijing particularly important to Tehran’s ability to withstand sanctions.

The possibility of secondary sanctions against Chinese entities could therefore create another major point of tension between Washington and Beijing.

Iran's top security officials have also issued stronger warnings against countries cooperating with Washington.

The new head of Iran’s top security body said that Tehran would consider any country’s support for the US sanctions an “act of war.”

Iran has warned that it will retaliate against an expanded US sanctions campaign, including possible measures targeting countries that continue doing business with Tehran, as tensions remain high over the Strait of Hormuz.

Iranian Foreign Ministry spokesperson Esmail Baghaei said Tehran would not remain passive in the face of further economic pressure.

“Any escalation of this situation will undoubtedly bring about consequences,” Baghaei said. “Our hands are not tied.”

Iran is facing a growing gasoline shortage as US pressure limits fuel imports and war-related damage strains domestic supplies.

Tehran has seen long queues at petrol stations, with motorists rushing to fill tanks amid fears of higher prices, according to the state-run Hamshahri newspaper.

Iran’s gasoline market has a daily shortfall of 14-15 million litres, according to energy official Esmaeil Saqab Esfahani.

The deficit is being driven by record demand, damage from the war and changes in budget priorities. (Bloomberg)

Iran’s rial hit a record low, falling to around 2.02 million per US dollar as Washington prepared to announce fresh sanctions.

The market rate is significantly weaker than Iran’s official Central Bank rate of about 1.5 million rial per dollar.

The currency has been under pressure from double-digit inflation, negative growth, sanctions and the nearly six-month war.

The Trump administration is preparing tougher sanctions, including possible secondary sanctions on countries and businesses that continue trading with Iran.

US to unveil ‘greatest financial offensive ever’ against Iran, target countries doing business with Tehran

Washington is set to announce measures aimed at countries and companies maintaining economic ties with Iran.

Treasury Secretary Scott Bessent described the planned measures as “an economic D-Day — the single greatest financial offensive ever marshalled against an adversary.”

The US could expand sanctions against foreign entities that help Iran access global trade and finance.

Measures may target oil shippers, buyers and currency exchangers that help Iran finance imports.

Israel has accused Hamas of preparing renewed attacks from Gaza using kites and balloons and has given the group until Wednesday to stop the launches.

Israeli Defense Minister Israel Katz ordered a “zero containment and zero tolerance” policy toward kites and balloons launched toward communities in the Negev.

Katz warned that forceful action could follow if the launches continue, saying a kite or balloon would be treated like a drone, whether or not it carries explosives.

Israeli officials became concerned after about six kites landed near communities along the Gaza border over the weekend, although no explosives or incendiary devices were found.

Kites and balloons were previously used from Gaza to start fires across Israeli farmland and forests, including before the October 2023 Hamas attacks. (Bloomberg)