Trump Prepares to Escalate Economic Pressure on Iran with New Sanctions
US President Donald Trump has threatened to increase economic pressure on Iran, and experts say he may have several options to do so. The US Treasury Secretary Scott Bessent announced that new sanctions would be imposed soon, which could further strain Iran's already struggling economy.
The US has a history of imposing sanctions on Iran, with over 1,000 people, vessels, and aircraft targeted since Trump began his second term. Recent measures have focused on Iran's shadow oil fleet, shipping insurers, entities that help Iran acquire weapons, and digital exchanges, freezing an estimated $500 billion in Iran-linked cryptocurrency.
Experts say the Trump administration could also consider targeting Chinese 'teapot' refineries, which account for a quarter of China's refinery capacity. These independent refiners operate with narrow profit margins and are somewhat immune to US financial sanctions. However, imposing secondary sanctions on smaller China- and Hong Kong-based entities accused of processing Iranian oil could have a chilling effect on bigger financial institutions.
Other options include targeting Iranian, Chinese, and Gulf entities that help Iran evade sanctions, as well as imposing further aviation sanctions to degrade Iran's ability to move trade. Some US and Israeli officials have even floated the idea of a land blockade, which would require assistance from Iran's neighbors. However, such a move would be difficult to execute and may not result in protests or internal pressure.