US Targets Iranian Trading Partners in Bid to Squeeze Tehran's Economy

The US is preparing to unveil a new economic offensive against Iran, but the measures have not been announced yet. Treasury Secretary Scott Bessent will reveal the details on Monday, describing it as the 'end game with Iran' and the 'greatest campaign of coordinated economic isolation in the history of the world'. The focus is likely to shift from directly sanctioning Iranian companies to targeting entities in countries that continue to trade with Iran, particularly China, which buys over 80% of Iranian oil.

China's involvement makes the strategy harder for Washington. Targeting Chinese companies could lead to another confrontation between the US and China. Adam Dixon expects the US to take a 'surgical' approach, targeting entities that can disrupt Iranian oil flows without creating wider concerns for China's financial system.

The calculation also considers the potential impact on global oil supplies and prices. Iran has warned it could halt oil exports through the Persian Gulf if the US continues its economic pressure. A prolonged disruption would affect far more than Iranian oil, potentially increasing shipping, insurance, and crude costs across the region.