Treasury Secretary Scott Bessent warned that countries continuing economic ties with Iran may face new financial penalties. The United States is threatening to isolate nations that do not sever trade links with Tehran, but has not yet imposed major new sanctions. Bessent said the administration is working to cut off financial support for Iran by targeting entities that help facilitate its trade.
He emphasized the U.S. is making direct calls to world leaders urging them to stop trading with Iran, according to NBC News. The new measures are meant to pressure countries that support Iran indirectly through financial channels and trade networks. Iran’s Finance Minister Ali Madanizadeh said his country is ready to withstand the threat of new sanctions, according to a report from CNN.
Iranian negotiator Mohammad Bagher Ghalibaf dismissed U.S. warnings, saying the country is not in a vulnerable position. The Iranian government has long faced economic restrictions, and many citizens are already experiencing hardship. Iran’s Supreme National Security Council secretary Mohsen Rezaei said the U.S. must change its approach to dealing with Iran.
He added that relying on force and bullying will only make the situation worse for both sides. Rezaei also warned Gulf states that countries joining in the new sanctions could be seen as enemies of Iran, NPR reported. Iran’s security chief said attacks on shipping routes through the Strait of Hormuz could disrupt oil supplies even more.
The U.S. has been pushing for countries to end trade with Iran, but analysts question how effective the new threats will be. China, which has historically bought most of Iran’s oil, is not named directly in the new warnings. The Trump administration has been applying sanctions on Iran for almost 50 years.
Iran has often found ways to avoid the impact of these penalties by creating new companies and networks. Bessent said that the goal is to isolate Iran completely until it stands alone in its international relations. Markets showed little reaction when Bessent announced the new measures, suggesting investors are skeptical of their impact.
The U.S. has also been conducting a naval blockade that limits goods entering Iran from abroad. Iran’s currency has dropped significantly in value ahead of the possible new sanctions. Many Iranians are now using credit systems to buy food due to a lack of cash.
The war in the region has already caused major disruptions to oil exports from the Gulf, which is one reason why Iran’s economy is under strain. Israeli Prime Minister Benjamin Netanyahu praised the U.S. for its actions and said it was right to penalize Iran’s supporters. Netanyahu also noted that the U.S. is taking a strong stance against Iran’s regime and its allies.
The U.S. has been working with regional leaders to encourage them to reduce ties with Iran. Pakistan’s army chief met with Iranian officials in Tehran today, including Ghalibaf. Oman’s foreign minister is also scheduled to visit Iran for talks on the Strait of Hormuz.
Iran’s government said it will retaliate strongly if any new sanctions are enforced. The Iranian security chief, who once led the Revolutionary Guard, is now advising the Supreme Leader on national security matters. Iran has been attacking shipping routes in the Gulf, which could further impact oil deliveries.
The war has also affected Trump’s approval ratings ahead of upcoming elections. Inflation in Iran is now almost 90%, according to government statistics. The U.S. has long imposed economic restrictions on Iran, but these have often failed to fully isolate the country.
IMAGE: Senator Tim Scott meeting with Scott Bessent, President-elect Donald Trump’s choice for Treasury Secretary.. Photo: Senator Tim Scott / Wikimedia, taken 2024-11-24, Public domain