Washington announced on Monday a plan to isolate Iran’s economy by threatening secondary sanctions against foreign firms and governments that continue to trade with Tehran. The Treasury described the measures as an effort to cut off the country’s remaining sources of revenue.
Officials said the strategy targets Iran’s “enablers” — the network of intermediaries, shippers, and buyers that keep oil and other goods moving despite existing restrictions. Under secondary sanctions, entities doing business with sanctioned Iranian parties risk losing access to the US financial system.
Treasury Secretary Scott Bessent indicated that no country would be shielded from the campaign, including China. Chinese refiners have long been among the largest purchasers of Iranian crude, much of it moved through vessels and traders operating outside Western oversight.
The announcement extends a pressure campaign that has escalated through the year. In earlier statements, the president declared what he called economic warfare on Iran and cautioned other nations against providing support to Tehran.
The measures follow months of confrontation between Washington and Tehran. A five-month conflict earlier in the year drew in Israeli and US military action before a planned strike was halted amid the prospect of a negotiated settlement.
The inclusion of China raises the prospect of friction with Beijing, which has rejected unilateral US sanctions as illegitimate and continued energy purchases from Iran. Any enforcement against Chinese entities would test relations already strained by trade disputes.
Iranian officials have previously dismissed sanctions pressure as ineffective, pointing to years of adaptation under restrictions imposed since the collapse of the 2015 nuclear agreement. Tehran has expanded trade with buyers willing to bypass Western controls.
The plan does not specify a full list of targeted entities. Officials said additional designations would follow, aimed at shipping firms, financial intermediaries, and buyers involved in Iranian oil sales.
The White House framed the approach as an alternative to further military escalation, seeking to constrain Tehran’s finances rather than its facilities. Energy markets have reacted to earlier rounds of tension, with traders watching for disruptions to crude supply.
The Treasury said enforcement would begin immediately, with penalties applied to any party found facilitating prohibited transactions.