US expands sanctions on Iran, targets funding and shipping

The United States is expanding its economic pressure on Iran in an effort to cut off its sources of funding and push Tehran to end attacks on shipping in the region, as the fallout from the conflict increasingly impacts global energy and trade markets.

The US Treasury Department has imposed sanctions on 60 individuals, entities, and vessels. However, the list did not include any Chinese financial institutions suspected of facilitating Iranian oil trade. The measures targeted other companies in China, the UAE, Singapore, and several other countries, and included a cooking oil refinery in France.

US Treasury Secretary Scott Besant announced on Monday the expansion of secondary sanctions on Iran, describing the move as an “economic victory day.” He emphasized that Washington is targeting financial networks that help Tehran circumvent sanctions and maintain revenue flows.

Besant said the United States is “waging an economic assault on Iran’s financial links worldwide,” noting that the goal is to sever every economic lifeline supporting the Iranian government and ultimately isolate Tehran economically.

The Treasury Secretary did not disclose which countries would be affected by the new measures or when the sanctions would take effect, but he sent a clear message to countries and companies doing business with Iran: continuing such relationships could risk losing access to the dollar-based financial system.

According to US Treasury data, the United States has imposed Iran-related sanctions on more than 1,000 individuals, vessels, and aircraft since what it describes as the start of Donald Trump’s second term in 2025.

Washington targets Iran’s economic arteries

The new measures are part of efforts by the administration of President Donald Trump to increase pressure on Iran, coinciding with ongoing attacks on ships in the Gulf and Red Sea that began after US and Israeli airstrikes on Iran in February.

Washington believes tightening sanctions can pressure Tehran to halt attacks on shipping, while Iran warns that sanctions and economic pressure could backfire.

Iran has lived under successive US and international sanctions for decades, weakening its economy but so far failing to change its leadership’s behavior.

About six months after the start of US and Israeli strikes on Iran, the conflict’s impact has spread to shipping and energy markets, disrupting navigation in the region and restricting oil flows, with consequences for both the US and global economies.

In oil markets, prices fell on Monday after two weeks of gains, as investors took profits ahead of the anticipated US sanctions announcement.

‘No one’ exempt from sanctions

Washington is focusing particularly on networks used by Iran to smuggle oil and evade sanctions. Besant said the US Treasury has mapped out the networks, intermediaries, and financial channels Tehran relies on for revenue.

He added that the United States will work with partners to target what he described as Iran’s “illicit” sources of income.

According to the US Treasury, the Iranian government relies on five key sectors to support its economy: digital assets, technology, gold, aviation, and shipping, all of which are now exposed to sanctions.

The Treasury has already imposed sanctions on about 60 entities, individuals, and vessels as part of the new campaign to tighten the squeeze on Iranian funding sources.

In a message apparently directed at countries with trade ties to Tehran, Besant, responding to a question about Chinese banks, said, “No one is exempt from the scope of US sanctions.”

China at the heart of US calculations

China is a particularly sensitive point in Washington’s new strategy, as it has been the largest buyer of Iranian oil for several years.

Besant had earlier called on Beijing to cooperate with the United States, while the US blockade of Iranian ports, reimposed in mid-July, has already reduced Iranian oil flows to China.

However, tightening sanctions on Chinese banks could open a new economic front between Washington and Beijing, amid expectations of talks next month between President Donald Trump and Chinese President Xi Jinping.

Experts warn that China may retaliate against any sanctions targeting its banks, especially as US restrictions on its exports of critical minerals remain a highly sensitive issue for Beijing.

China’s Foreign Ministry has rejected sanctions and pressure policies, stating that such approaches do not help resolve issues and that Beijing will take necessary measures to protect its interests.

Trump threatens tariffs

US pressure is not limited to financial sanctions. Trump has also threatened to impose tariffs on goods from countries trading with Iran, including Turkey, Iraq, and India.

This threat comes as the Supreme Court has overturned the legal basis for such tariffs.

In response, Iran has rejected US threats and raised its warnings regarding navigation in the region, instructing ships not to pass through the Strait of Hormuz without its authorization.

Iran also published a list of 45 vessels it said violated its rules, warning of retaliation against any ship-to-ship transfers involving them.

These measures increase the risks surrounding one of the region’s most important energy and shipping corridors, as the conflict continues to disrupt shipping and oil flows.

Pakistan moves to open negotiations

Amid escalating economic pressure, Pakistan has taken steps toward Tehran, with Iranian media reporting that Pakistani army chief Asim Munir arrived in Iran on Monday for talks.

Pakistan said the visit aims to “promote peace and stability in the region,” while a Pakistani source said Munir would meet with figures close to Iran’s Supreme Leader.

Two Pakistani sources said Trump held a phone call with Munir last week, while another source said the main request during the talks was to bring Iran back to the negotiating table.

The White House confirmed the call but did not disclose its details.

These moves come as there have been no mutual airstrikes between US and Iranian forces for weeks, while the last direct official talks between Washington and Tehran on ending the six-month conflict date back to June.