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Sanctions and “Economic D-Day”
The Trump administration unveiled new sanctions targeting Iran’s economy, with Treasury Secretary Scott Bessent describing the effort as “an economic onslaught” against Iran’s financial connections around the globe.
“Treasury Secretary Scott Bessent today announced new sanctions targeting Iran”
NBC News reported that Bessent’s announcement followed Trump’s warning of an “economic D-Day” as the U.S. sought to heap economic pressure on Iran’s rulers.
In parallel, CBS News said Iran’s president believed a June memorandum of understanding remained the best path to end the war, but that the 60-day period for a wider peace deal expired with no agreement and both countries declared the deal dead.
CBS News also reported that Bessent vowed the campaign would amount to “the single greatest financial offensive ever marshalled against an adversary,” as the U.S. moved to isolate Iran from the global economy.
Iran’s Economy Minister Ali Madanizadeh responded on state television, predicting “another defeat” for the United States and saying Tehran had a “two-year plan” to manage the sanctions.
Iran’s response and regional shipping
Iran warned that it would respond harshly to expanded U.S. sanctions, with Esmail Baghaei telling Spectrum News, “Any escalation of this situation will undoubtedly bring about consequences,” and adding “Our hands are not tied.”
CNN reported that Finance Minister Ali Madanizadeh told Iran’s state-run Islamic Republic of Iran News Network (IRINN) that Tehran was “fully prepared” to counter U.S. sanctions targeting countries that maintain ties to Iran.
The sanctions push unfolded alongside maritime incidents in the Strait of Hormuz, where UKMTO said an unidentified projectile struck and disabled an oil tanker about nine nautical miles northeast of Oman’s Ash Shishah, damaging the engine room while the crew was reported safe.
CBS News said the U.S. military has redirected 71 commercial ships in its blockade against Iran, and that over 40 ships supporting humanitarian aid have been allowed to pass through the blockade.
In the same period, CBS News reported that talks between Iran and Oman on future management of the Strait of Hormuz were set to continue Tuesday, with fees being discussed as a recurring theme.
Who gets targeted next
The U.S. framed the sanctions as cutting off Iran’s economic lifeline, with Reuters saying the expansion would “cut off Iran's economic lifeline” while putting the world on notice to cease doing business with the Islamic Republic.
“cut off Iran's economic lifeline”
Fox News reported that Treasury Secretary Scott Bessent said countries that violate new U.S. sanctions against Iran will be forced out of the global financial market backed by the U.S. dollar, warning, “they should expect that they will leave the dollar system.”
CBS News said the new sanctions were intended to heap economic pressure in the hope of breaking the stalemate, while also noting that Iran’s currency had dropped to a record low against the dollar as the pressure intensified.
CNN reported that Bessent declined to name specific countries, but said China, India, Turkey, Iraq, and the United Arab Emirates could be most at risk for U.S. action, and cited the UAE’s announcement that it was suspending all trade and financial transactions with Iran “until further notice.”
In the background of the sanctions campaign, the New York Times reported that Bessent characterized the initiative as “Operation Economic Outcast” and said the U.S. would “tighten the noose” by imposing sanctions on every source or facilitator of Iran’s revenue.