Trump Eyes Fresh Economic Sanctions on Iran Amid War Funding Concerns
US President Donald Trump is considering further economic pressure on Iran to weaken its ability to finance the war. Treasury Secretary Scott Bessent hinted at new measures, saying that Washington would impose sanctions that have 'never been seen' as soon as next week. The current sanctions have already disrupted Iran's oil trade and frozen an estimated $500 billion in Iran-linked cryptocurrency.
The US has targeted various entities and individuals facilitating Iranian oil payments, including shipping insurers and digital exchanges. Experts say the Trump administration still has several options to further pressure Tehran, such as targeting China's independent 'teapot' refineries, which absorb a significant share of Iranian oil. These refineries account for roughly a quarter of China's refining capacity and are a critical lifeline for Iran.
The US could also go after Chinese banks accused of facilitating Iranian oil payments, although this would risk triggering retaliation from Beijing at a time when Trump is seeking to manage broader US-China tensions. Alternatively, the administration could intensify its 'whack-a-mole' strategy by repeatedly sanctioning Iranian entities and companies in China and the Gulf that help Tehran evade restrictions.