US Unveils Economic D-Day Sanctions to Isolate Iran

The US has announced an expansion of secondary sanctions against Iran, aiming to 'sever every economic lifeline' sustaining the country. Treasury Secretary Scott Bessent described this move as an 'economic D-Day', which would give a final warning to countries to cut their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system.

Bessent stated that Washington is launching an economic onslaught against Iran's financial connections around the globe, targeting any source of Iran's 'illicit revenue'. The Treasury Department has mapped the networks, facilitators, and financial channels Iran uses to smuggle oil and evade sanctions. Bessent emphasized that no one is above the reach of US sanctions.

The move comes as part of US efforts to put pressure on Iran to end attacks on ships in the Gulf and the Red Sea. Almost six months have passed since the US and Israel launched strikes on Iran, sparking a conflict that has snarled shipping in the region, crimped oil flows, and taken a toll on the US and global economies.

Oil prices eased after two weeks of gains as investors took profits ahead of the expected US announcement. The Treasury Department has identified five sectors, digital assets, technology, gold, aviation, and shipping, that Iran is using to prop up its economy and are now on notice for sanctions. Bessent did not specify which countries would be targeted or when those penalties would take effect.