Following a recent US-Iran military conflict, the US is shifting its strategy to economic sanctions against Iran. Treasury Secretary Scott Bessent warned of increased secondary sanctions targeting Iranian oil revenue and banking ties, aiming to pressure Iran into negotiations. Experts caution that this approach could backfire and damage relationships with key allies.
The US is preparing to ramp up economic pressure on Iran by levying secondary sanctions on financial institutions, which is expected to have an effect similar to a bombing campaign. The Treasury Department has sent a letter to financial institutions in China, Hong Kong, the UAE, and Oman, threatening to levy secondary sanctions for doing business with Iran. This strategy will be used by President Trump to pressure Iran to accept US proposals to limit its nuclear ambitions.