The US announced "economic D-Day" sanctions aimed at isolating Iran and warned that anyone doing business with Iran risks being cut off from the dollar-based financial system.
On Monday, 24 Aug 2026 GMT+7, the US announced an expansion of secondary economic sanctions on Iran. US Treasury Secretary Scott Bessent said in a press briefing that the US aims with these sanctions to "cut off every major economic artery" supporting Iran.
Bessent revealed the sanctions, which he described as an "economic D-Day," are intended as a final warning to countries to sever business ties with Iran, or their key companies and organizations may be cut off from the dollar financial system.
"We are launching an economic assault on Iran's global financial network. Our goal is to cut off every major economic artery sustaining this tyrannical regime until Tehran stands isolated," Bessent said.
This move is part of US efforts to pressure Iran to stop attacking commercial ships in the Persian Gulf and Red Sea through proxy forces like the Houthi group, after Tehran closed the Strait of Hormuz in retaliation against US and Israeli attacks that sparked the Middle East war on 28 Feb.
For decades, Iran has faced multiple layers of US and international sanctions that have severely impacted its economy but failed to deter Iranian leaders. Iran has stated that the latest US sanctions will have the opposite effect.
Previously, Bessent sought cooperation from China, Iran's largest oil buyer for years, despite US blockade measures on Iranian ports that resumed in mid-July reducing Iran's oil exports to China.
Experts believe Washington remains cautious about provoking China by sanctioning Chinese banks before the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, as China's rare earth mineral exports are highly sensitive.
When asked about Chinese banks, Bessent said, "We want to be clear today that no one is above the reach of US sanctions."
China's Foreign Ministry stated that sanctions and pressure tactics do not solve problems and that Beijing will do everything necessary to protect the country's interests.
Bessent added that the US Treasury has traced the networks, supporters, and financial channels Iran uses to smuggle oil and evade sanctions, and Washington will work with allies to target all sources of Iran's "illegal revenue."
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Source:cna