The US threat to sever Iran’s economic lifeline with a raft of new sanctions, coupled with Tehran’s warnings of military retaliation and further restrictions on oil exports, has raised the stakes across the region.
The new sanctions come a week after a 60-day window to negotiate a US-Iran peace deal and reopen the Strait of Hormuz expired.
US Treasury Secretary Scott Bessent on Monday unveiled measures intended to isolate Iran's economy, with the US having struggled to solve the conflict with Tehran militarily. However, he held back from imposing the most punitive sanctions, warning that countries that continue to trade with Iran risked being cut off from the dollar-based financial system.
Bessent did not outline the penalties or provide a timeline for countries and businesses to comply with these measures.
The US Treasury Department sanctioned 60 entities, individuals and vessels and suspended several general licences, including those allowing certain remittance payments to Iran. It is also working with partners to disrupt networks, facilitators and financial channels generating "illicit revenue".
