policy
The administration of US President Donald Trump is moving to intensify economic pressure on Iran through a new sanctions campaign that may target countries, companies, and financial institutions continuing to deal with Tehran. This step comes in an attempt to break the stalemate in the conflict between the two sides after about 6 months, despite Trump's pledge to achieve a quick victory. Trump had warned of what he described as a "decisive economic day," cautioning that any country continuing to deal with Iran would face "enormous" economic consequences, at a time when opportunities for a military resolution or a negotiated settlement are declining. Washington has not yet revealed the details of the new measures, but US Treasury Secretary Scott Bessent stated that he "will announce them during a press conference on August 24." Bessent added in an interview with CNBC that "the United States is prepared to take action against any country, whether an ally or an adversary, if it aids Iran economically." He clarified that "the measures may target money transfers, purchases of Iranian oil, and maritime transport operations linked to Tehran," affirming that Washington will use its full capabilities to impose sanctions. US Vice President JD Vance described "the sanctions as a new phase of the conflict," noting that "economic pressure represents Washington's most effective tool to achieve its objectives." Iran has been subject to US sanctions for decades, and economic pressure on it escalated after the first Trump administration withdrew in 2018 from the nuclear deal concluded in 2015. Washington also launched the "Economic Fury Operation" during the current conflict, which combines sanctions targeting Iranian financial flows and a naval blockade of Iranian ports. Experts believe that "the new measures may rely more on secondary sanctions, by targeting countries and financial institutions that continue to deal with Iran and simultaneously rely on the dollar and the US financial system." Michael Parker, a former official in the Office of Foreign Assets Control (OFAC) at the US Treasury Department, told the BBC that "the new strategy might aim to expand the economic impact of sanctions to include third parties assisting Tehran in accessing the financial system or transferring funds." However, experts point out that "Iran has gained extensive experience in circumventing sanctions, through the use of unconventional financial and commercial channels and ships within what is known as a shadow fleet for oil transport, as well as establishing new commercial fronts." Mohamed Hamouda, Director of Export Control and Sanctions at the London Stock Exchange, told the BBC that "Iran quickly adapts to the restrictions imposed on it and constantly seeks new ways to circumvent them." The effectiveness of the new US campaign may largely depend on the stance of countries that continue to deal with Iran, including China, in addition to Washington's allies. Imran Bayoumi, a geostrategic expert at the Atlantic Council, stated that "the step reflects a new American attempt to use economic pressure after other options did not achieve the desired results." He added to the BBC that "the fundamental question still concerns the US strategy and its ultimate goals," expressing doubt about the new sanctions' ability to create long-term change unless they are part of a clearer strategy.
