US Warns Iran's Trading Partners of More Sanctions

United States Treasury Secretary Scott Bessent has issued a stern warning to countries and entities engaged in trade with Iran, signaling Washington's intent to impose additional sanctions and intensify economic pressure on Tehran.

Bessent announced on Monday that the U.S. is broadening its secondary sanctions to encompass five critical sectors of Iran's economy: digital assets, technology, gold, aviation, and shipping. He indicated that trading partners would be given a "defined timeline" to cease their dealings with Iran, and any entities facilitating money laundering or sanctions evasion by Tehran could face exclusion from the U.S. financial system.

This announcement, however, fell short of the more aggressive "economic D-Day" and "single greatest financial offensive ever marshalled against an adversary" that Bessent had previously alluded to in a Financial Times article. On Monday, he clarified that the U.S. was offering Iran's trading partners an opportunity to rectify their behavior, stating, "We are giving everyone the opportunity to remedy bad behaviour. Why would I want to blow up the global financial system?"

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We are giving everyone the opportunity to remedy bad behaviour. Why would I want to blow up the global financial system?

Bessent cautioned that the U.S. would act unilaterally if compliance was not met, emphasizing, "If they do not take action, we will do so unilaterally through Treasury authorities. We do not have infinite patience here." The potential measures could impact nations such as China, the United Arab Emirates, Turkey, and Iraq, all significant trading partners with Iran. President Donald Trump is reportedly engaging directly with world leaders to urge them to cease trade with the Iranian government.

Iranian officials have largely dismissed the U.S. threats. Mohammad Bagher Ghalibaf, Iran's chief negotiator, characterized the warnings as "empty boasting," asserting that Washington lacks the economic standing to further restrict Iran's international relations. Iran's Economy Minister, Ali Madanizadeh, echoed this sentiment, stating that the sanctions were not new and Tehran was prepared for increased economic pressure.

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If they do not take action, we will do so unilaterally through Treasury authorities. We do not have infinite patience here.