US Tightens Economic Grip on Iran with New Sanctions

The US has tightened its economic grip on Iran by unveiling new sanctions aimed at isolating Tehran's economy. The move comes after a 60-day window to negotiate a peace deal between Washington and Tehran expired last week.

US Treasury Secretary Scott Bessent said that countries that continue to trade with Iran risk being cut off from the dollar-based financial system, but did not provide details on the penalties or timelines for compliance. The US has sanctioned 60 entities, individuals, and vessels in addition to suspending several general licences.

China is one of the key players that could be affected by these sanctions, as it buys over 80% of Iran's shipped oil, according to data from analytics firm Kpler. However, Bessent declined to comment on whether the US plans to target Chinese financial institutions suspected of facilitating Iran's oil trade.

The impact of these sanctions is already being felt in Iran, where oil exports have reportedly come to a halt due to the US naval blockade of Iranian ports. The country's economy minister has warned that trading partners will resist US pressure, but it remains to be seen how regional states will respond.