Bessent expects others to join UAE in halting Iran trade ties

US Treasury Secretary Scott Bessent said on Wednesday he expects other countries to join the UAE in halting trade ties with <a href="https://www.thenationalnews.com/mena/iran/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/mena/iran/">Iran</a>. Mr Bessent was speaking after Washington unveiled a new pressure campaign “to sever every economic lifeline” that supports the Tehran, in a bid to isolate Tehran economically. Last week the UAE announced it was suspending trade ties after Iran launched two missiles at the Emirates, and attacked Adnoc tankers. Iran has launched hundreds of drones and missiles at Gulf states in retaliation for US-Israeli missile strikes in February that killed supreme leader Ayatollah Ali Khamenei. "I would think that the actions that they took last week were not coincident, but likely causal, and I would expect that we would see a broad array of countries taking similar actions as we continue our engagement," Mr Bessent said during a media conference. "The UAE have been very good partners and have taken the brunt of the Iranian attacks in the Gulf." Mr Bessent said countries <a href="https://www.thenationalnews.com/news/us/2026/08/20/bessent-iran-sanctions/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/news/us/2026/08/20/bessent-iran-sanctions/">must choose a side</a> between the US and Iran as Washington seeks to isolate Tehran’s economy, after the <a href="https://www.thenationalnews.com/business/2026/08/24/irans-currency-hits-record-low-as-us-prepares-to-hit-tehran-with-economic-offensive/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/business/2026/08/24/irans-currency-hits-record-low-as-us-prepares-to-hit-tehran-with-economic-offensive/">rial</a> sank to an all-time low against the dollar. As part of this effort, the US launched “Operation Economic Outcast” and introduced a host of new measures against companies supporting the regime. The Treasury said it had identified five sectors the regime uses to support its economy: digital assets, technology, gold, aviation and shipping. The department imposed sanctions on 60 companies, people and ships supporting Iran's nuclear and missile technology procurement, cyber operations and oil sector. It also suspended licences that authorised certain remittance payments to Iran. Describing the latest announcement as an “economic D-Day”, Washington has said countries must side with the US or be at risk of becoming a “global pariah”. President Donald Trump’s administration has turned towards taking a <a href="https://www.thenationalnews.com/opinion/editorial/2026/08/24/trumps-economic-war-with-iran-needs-a-diplomatic-off-ramp/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/opinion/editorial/2026/08/24/trumps-economic-war-with-iran-needs-a-diplomatic-off-ramp/">harsher economic stance</a> against Iran to break a stalemate in the six-month war, rather than restart military operations. The Treasury Department warned that any business or country operating on Iran's behalf could be cut off from the dollar-based financial system. “We are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Mr Bessent said. The Treasury Department said it was broadening the scope of secondary sanctions on companies and countries that do business with Iran. Mr Bessent stopped short of naming which countries were in focus, nor did he provide a timeline on when penalties would take effect. He did, however, say a major financial institution will be sanctioned this week. Mr Bessent said the penalties would not be imposed immediately because the US wanted to give countries the "opportunity to remedy bad behaviour". "Why would I want to blow up the global financial system? We believe that it is important to ⁠level-set and give people a cure period, but they should know that that will move very quickly and that we are serious,” he said. Mr Bessent said the Treasury has mapped out the channels Iran uses to smuggle oil and evade sanctions, and that Washington is working with its partners to combat that. Attention has turned towards <a href="https://www.thenationalnews.com/business/energy/2026/05/12/chinas-status-as-irans-top-oil-customer-in-focus-before-trump-xi-meeting/" target="_blank" rel="noreferrer" title="https://www.thenationalnews.com/business/energy/2026/05/12/chinas-status-as-irans-top-oil-customer-in-focus-before-trump-xi-meeting/">China</a>, India and Turkey. China remains the largest buyer of Iranian crude and, while independent “teapot” refineries have had sanctions imposed, the US has not yet issued more provocative measures, which could derail a trade truce that placed a limit on tariffs and maintained the flow of rare-earth minerals. “We find that the best way to engage with countries is through quiet diplomacy, and we are level-setting with every country to tell them our expectations. We know who they are. They know who we are,” Mr Bessent said. Currently, diplomatic talks remain at a standstill and the Strait of Hormuz remains effectively shut, snarling global energy flows. For decades, Tehran has dealt with economic sanctions against its financial, aviation and cryptocurrency sectors, and members of its Islamic Revolutionary Guard Corps. Iran pledged to retaliate before Monday's announcement. Mohsen Rezaei, secretary of the Supreme National Security Council, wrote on X on that countries joining the US economic campaign would be treated as an “enemy”. The result would be that “not a single drop of oil will be exported, neither through the Strait of Hormuz nor from anywhere” in the Gulf, he added. Tanker traffic in the Strait of Hormuz has been dwindling since the war began. Earlier, a tanker was struck by an unknown projectile west of the Saudi port city of Yanbu, leading to a fire on the ship's main deck, the UK Maritime Trade Operations said. All crew were safe and accounted for, with no reported environmental impact. Pakistan’s army chief Field Marshal Asim Munir arrived in Iran on Monday for talks, which Islamabad said was to “promote regional peace and stability”. Badr Al Busaidi, Oman's Foreign Minister, was scheduled to visit Tehran on Tuesday to continue talks on the Strait of Hormuz. Oman has pursued separate talks with Iran on navigation through the strait.