US Expands Sanctions on Iran and Delays 'Harsher Measures'

The United States revealed on Monday that it is expanding its sanctions against Iran, stating this would sever the country's economic lifeline, but stopped short of taking "harsher measures," opting instead to warn the international community to halt commercial dealings with Tehran.

U.S. Treasury Secretary Scott Bessent said other countries must cut their commercial ties with Iran, or risk exclusion from the dollar-based financial system.

However, the American official refrained from naming specific countries that might be targeted or setting a date for when these sanctions would take effect, saying he would grant them time to comply with the new directive, according to Reuters.

Bessent added in a press conference: "We are giving everyone the chance to correct bad behavior. Why would I want to destroy the global financial system?"

The Treasury Department announced new sanctions on 60 individuals, entities, and vessels, but the list did not include any Chinese financial institutions suspected of facilitating Iranian oil trade.

While Washington faces challenges in ending an unpopularity war that has driven up energy prices, it appears to be relying more on economic pressure, despite Iran having endured decades of U.S. and international sanctions that weakened its economy without deterring its leadership.

Although neither side has launched major attacks in weeks, there are no signs of a diplomatic resolution to the conflict. Meanwhile, the U.S. is seeking new ways to stop Iran’s attacks on ships and recent strikes through its allies in the Red Sea.

Before the announcement, Iran threatened military retaliation and further reductions in Gulf oil exports in response to any U.S. economic measures. Afterwards, Iranian Economy Minister Ali Moeini Zadeh stated, "We are fully prepared for U.S. sanctions."

Press channel reported that Hussein Mokhtari, spokesperson for Iran's Revolutionary Guard, pledged to deliver strong blows to vital U.S. interests and energy corridors should Iran's infrastructure face threats.

It has been nearly six months since the U.S. and Israel began their strikes on Iran, sparking a conflict that disrupted shipping in the region, restricted oil flows, and damaged both the U.S. and global economies.

Oil prices fell by more than two dollars per barrel on Monday, despite investors’ readiness for further supply disruptions in the Middle East.

Moeini Zadeh said China and Russia had "not accepted" the U.S. measures and expected other nations to resist them as well.

Bessent had previously urged China to cooperate with the U.S. Beijing has long been Iran’s largest oil buyer, but the U.S. reimposed sanctions on Iranian ports in mid-July, already reducing Iranian oil flows to China.

Experts say Washington is concerned about China’s potential response to any sanctions targeting Chinese banks ahead of expected talks next month between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, as restrictions on China’s exports of critical minerals are highly sensitive.

When asked about Chinese banks on Monday, Bessent said: "We want to make clear today that no one is exempt from the reach of U.S. sanctions."

The Chinese Foreign Ministry stated that sanctions and pressure tactics do not help resolve issues, and Beijing will take whatever steps are necessary to protect its interests.

Bessent said the U.S. Treasury has mapped out the networks, intermediaries, and financial channels Iran uses to smuggle oil and evade sanctions. He added that Washington will work with partners to target any source of Iran’s "illicit revenues."

The department said the Iranian government relies on five sectors to sustain its economy—digital assets, technology, gold, aviation, and shipping—and that these sectors are now exposed to sanctions.

Iran earlier issued a new warning to ships not to pass through the Strait of Hormuz without its permission. It published a list of 45 vessels it claims violated its rules, threatening retaliation against any transfers from ship to ship under its control.