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Sanctions Expand, Markets React
The U.S. dollar regained some strength on Tuesday as investors weighed Washington’s expanded sanctions against Iran and renewed efforts to ease pressure on longer-dated Treasury yields.
“Scott Bessent unveiled an expansion of sanctions against Iran on Monday”
U.S. Treasury Secretary Scott Bessent unveiled the measures on Monday, warning countries to cut business ties with Tehran or risk being forced out of the dollar-based financial system, and Ray Attrill of National Australia Bank said, "The suggestion being that, maybe if you're going to be sanctioned and you're not going to have access to U.S. dollars, then you better buy some dollars first before that happens."
The Arab Weekly reported that Iran promised to retaliate after the U.S. said the expanded sanctions would cut off Iran’s economic lifeline, with Tehran expressing confidence that major trading partners would resist Washington’s pressure campaign.
In the same coverage, the U.S. Treasury Department announced new sanctions on 60 individuals, entities and vessels, while Bessent stopped short of the most punishing sanctions and declined to identify the countries that would be targeted or reveal when penalties would take effect.
The Korea Herald said South Korea’s Ministry of Foreign Affairs was assessing the potential impact of the new sanctions, with Foreign Ministry spokesperson Park Doo-soon stating, "The government is closely monitoring developments concerning the new sanctions against Iran announced by the US Treasury Department on Aug. 24."
Iran Vows Retaliation
Iran’s response was framed as readiness for escalation after Bessent unveiled what he described as an “economic D-Day” and said countries that continued trading with Iran risked being forced out of the dollar-based financial system.
The Arab Weekly quoted Iranian Economy Minister Ali Madanizadeh telling state television, "We are fully prepared for the US sanctions," adding that the enemies intended to launch an "economic terrorist attack on us" while Tehran said it had its own tools.
Brigadier General Hossein Mohebbi, a spokesperson for Iran’s Islamic Revolutionary Guard Corps, vowed heavy blows to US vital interests and energy chokepoints if Iran’s infrastructure is threatened, Press TV reported.
France 24 reported that Bessent said the U.S. objective was to sever every economic lifeline, telling journalists, "Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone."
Euronews added that Bessent indicated he expected "an announcement of sanctions against a major financial institution before the end of this week," while warning that any entity that launders money on Iran’s behalf will be expelled from the dollar system.
What’s at Stake Next
The Korea Herald warned that the expanded campaign extends secondary sanctions beyond Iranian entities to companies and institutions in third countries doing business with Iran, with the U.S. launching "Operation Economic Outcast" in five key sectors: digital assets, technology, gold, aviation and shipping.
“Every country has a defined timeline to shut down activities we have identified”
It said Bessent told reporters that "Every country has a defined timeline to shut down activities we have identified," and that if they do not take action, the U.S. would do so unilaterally through Treasury authorities.
The same article highlighted South Korea’s exposure to oil-market disruption, quoting professor Kim Tae-bong of Ajou University saying oil could climb above $100 per barrel if Iran tightens its control over shipping through the strategic waterway, with some projections reaching $120-$140.
Euronews said the real risk for Europe lay in the sanctions’ enforcement “plumbing,” describing how banks, insurers, shipping companies, and commodity trading houses handle transactions for clients in dozens of countries, and that exposure to a sanctioned counterparty elsewhere can trigger sanctions.
In parallel, the Arab News WASHINGTON briefing said the Treasury Department mapped networks, facilitators, and financial channels Iran uses to smuggle oil and evade sanctions, and that "Treasury has issued determinations against five critical sectors — digital assets, technology, gold, aviation, and shipping —".