US Threatens Secondary Sanctions for Countries Doing Business with Iran

US Treasury Secretary Scott Bessent warned countries to cut ties with Iran or face secondary sanctions, calling it an 'economic D-Day,' but did not impose penalties. The move targets businesses in China, the UAE, Singapore, and other countries, including a French cooking-oil refinery.

Bessent said the US is expanding the scope of commercial activities that could be subject to secondary sanctions in five sectors: digital assets, gold, technology, aviation, and shipping. He also previewed a 'major announcement' on a financial institution by the end of the week.

However, Daniel Fried, a former US State Department sanctions coordinator, said the announcement did not live up to the hype, but economic pressure is better than restarting military conflict. The pressure campaign will take time to work and may require concessions from the Trump administration.