US unveils ‘economic D-Day’ of sanctions to isolate Iran

“NO ONE” BEYOND REACH OF SANCTIONS

Bessent previously urged cooperation from China, the biggest buyer of Iranian oil for several years, although the US blockade of Iran’s ports, renewed in mid-July, has already cut Iranian oil flows to China.

Experts say Washington is wary of Chinese retaliation for any sanctions on its banks ahead of expected talks next month between US President Donald Trump and Chinese President Xi Jinping, with any curbs on China’s exports of critical minerals especially sensitive.

Asked about Chinese banks on Monday, Bessent said, “We want to make clear here today that no one is above the reach of US sanctions.”

The Chinese Foreign Ministry said sanctions and pressure tactics do not help and Beijing would do what was necessary to protect China’s interests.

Bessent said the Treasury Department has mapped the networks, facilitators and financial channels that Iran uses to smuggle oil and evade sanctions. He said Washington would be working with US partners to target any source of Iran’s “illicit revenue.”

The department said the Iranian government was using five sectors – digital assets, technology, gold, aviation and shipping – to prop up its economy and they were on notice for sanctions. The Treasury has also imposed sanctions on nearly 60 entities, individuals and vessels.

Trump has threatened tariffs on goods from countries doing business with Iran, which include Turkey, Iraq and India, although the Supreme Court struck down the legal basis for such taxes.

Iran has dismissed the US threat and issued a new warning to shipping not to pass through the Strait of Hormuz without its permission, listing 45 ships it said had violated its rules and threatening retaliation for any ship-to-ship transfers with them.