World
Trump expands sanctions pressure on Iran
Will foreign banks and shippers cut ties before facing U.S. penalties?
Will foreign banks and shippers cut ties before facing U.S. penalties?
Trump’s expanding sanctions campaign against Iran is aimed at more than punishing Tehran directly. It is designed to make banks, , , and anywhere in the world think twice about doing business with Iran, raising the cost of support networks that keep its economy moving. The stakes reach beyond bilateral pressure because can reshape trade flows, energy markets, and far outside Iran.
The next test is whether Washington follows with more , and , which would confirm a rather than a one-time announcement. Oil traders, shipping firms and governments that still trade with Iran now face a more difficult choice between access to Iran and exposure to .
Reuters reported that Iranian oil offers to Chinese buyers had already fallen as U.S. pressure bit into shipments, while tanker movement through the Strait of Hormuz remained weak. The announcement pointed to deeper pressure on Iran’s main , especially oil exports, maritime transport and the that finance both.
The new measures raised the threat that non-U.S. banks, shippers, insurers and traders could lose access to the if they keep doing business with sanctioned Iranian interests. That kind of secondary-sanctions exposure can push companies to cut ties even without a direct U.S. order, because the reaches far beyond Iran itself.
The Trump administration formally expanded on entities and countries with business ties to Iran, with Bessent calling it an “” and saying the goal was to sever Iran’s financial lifelines. said the new determinations covered five sectors, , technology, gold, aviation and shipping, and that nearly 60 entities, individuals and vessels were sanctioned.
Iran’s foreign minister dismissed the new as a sign of U.S. desperation and said the measures would fail. The comment came as Iranian officials continued to signal that they would not change policy quickly under alone.
Oil prices fell ahead of the expected U.S. announcement, even as showed fewer than 20 commodity vessels transiting the over the weekend. The market reaction reflected both uncertainty about the scale of the sanctions and concern that shipping and could rise further.
Iran condemned the planned U.S. measures as damaging to its economy and to major trading partners, including China. The statement underscored that Washington was trying to influence , not just punish Iranian institutions.
Reuters reported that Washington was readying a broader sanctions expansion aimed at Iran’s business links around the world, with the package expected to deepen pressure on foreign . That buildup made clear the campaign would rely on risk, not just direct penalties on Iranian entities.
Iranian parliamentary leaders said the country had to plan to overcome “” after Bessent’s remarks. The response suggested Tehran expected a longer pressure campaign and was preparing to frame the measures as another failed attempt at .
rose after Trump threatened sanctions on Iran’s trading partners, as traders priced in the chance of tighter supply. Market reports also noted reduced through the Strait of Hormuz, highlighting how sanctions pressure was already affecting energy flows and shipping behavior.
After the sanctions threat, China said sanctions would not resolve the dispute, while Iran warned that any new U.S. pressure would face . The exchange showed that Washington’s campaign was already colliding with key before any new designations were formally announced.
The Trump administration said it would impose “the toughest in history” on Iran, with Bessent warning that economic measures could reduce the need for new military action. Reuters reported that Trump also urged countries to cut their ties to Iran, turning the policy into a warning aimed at and companies as well as .
Treasury Secretary Scott Bessent said the United States was preparing measures on Iran that had “never been seen” before, framing them as on a scale designed to block flows in and out of Iranian ports. He also tied the pressure campaign to tighter control over the , signaling that shipping disruption would be part of the leverage.