U.S. expands sanctions to target nations doing business with Iran

The United States unveiled a fresh round of economic sanctions designed to penalize firms and governments that continue trading with Iran, marking an escalation of the campaign launched after the February 28 war. Treasury Secretary Scott Bessent warned that any party facilitating transactions that turn Iranian oil into revenue will face secondary sanctions, effectively forcing a choice between the U.S. and Tehran. President Donald Trump previously announced on Truth Social that any country providing financial or logistical support to Iran would suffer "tremendous economic consequences."

The concept of secondary sanctions relies on restricting access to the U.S. market and dollar-clearing system, a tactic previously applied to Russian oil and military equipment. Past uses include the 2017 CAATSA law and sanctions on Turkey’s defence procurement agency. While Iran’s top export partners include China, Iraq, the UAE, Turkey and Afghanistan, experts say China’s limited reliance on U.S. finance could blunt the impact, especially since it bought 80% of Iran’s shipped oil in 2025.