US Launches Economic War Against Iran with Threat of Secondary Sanctions
The Trump administration is intensifying its strategy against Iran by shifting from kinetic military actions to severe economic pressure, described by Treasury Secretary Scott Bessent as the financial equivalent of a bombing campaign. With a ceasefire expiration looming, the US plans to impose strict secondary sanctions on countries and financial institutions that facilitate Iranian trade, particularly in oil. Recent warnings were issued to banks in China, Hong Kong, the United Arab Emirates, and Oman, accusing them of enabling illicit Iranian financial flows. The administration aims to suffocate Tehran’s economy, targeting entities like charitable trusts known as bonyads, to force Iran back to negotiations regarding its nuclear ambitions. While some Gulf neighbors are reportedly willing to freeze Iranian assets, experts warn that aggressive secondary sanctions could cause diplomatic fallout with allies and complicate coalition-building efforts. This escalation underscores Washington's determination to leverage global financial systems to isolate Iran economically if diplomatic agreements are not reached soon.
Wire timeline
US Launches Economic War Against Iran with Threat of Secondary Sanctions
The Trump administration is intensifying its strategy against Iran by shifting from kinetic military actions to severe economic pressure, described by Treasury Secretary Scott Bessent as the financial equivalent of a bombing campaign. With a ceasefire expiration looming, the US plans to impose strict secondary sanctions on countries and financial institutions that facilitate Iranian trade, particularly in oil. Recent warnings were issued to banks in China, Hong Kong, the United Arab Emirates, and Oman, accusing them of enabling illicit Iranian financial flows. The administration aims to suffocate Tehran’s economy, targeting entities like charitable trusts known as bonyads, to force Iran back to negotiations regarding its nuclear ambitions. While some Gulf neighbors are reportedly willing to freeze Iranian assets, experts warn that aggressive secondary sanctions could cause diplomatic fallout with allies and complicate coalition-building efforts. This escalation underscores Washington's determination to leverage global financial systems to isolate Iran economically if diplomatic agreements are not reached soon.
latimes