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US announces expansion of sanctions in ‘economic onslaught’ on Iran

Cyprus Mail · 2026-08-24

AI SUMMARY

• What happened: The Trump administration announced an expansion of sanctions on Iran, targeting nearly 60 entities and emphasizing a significant economic pressure campaign as the conflict nears its six-month mark. • Why it matters: The sanctions aim to sever Iran's economic ties globally, particularly focusing on key sectors like digital assets and oil, which could further impact global energy prices and diplomatic relations. • What to watch next: Monitor the response from China regarding its oil purchases from Iran, the effectiveness of the sanctions in isolating Tehran, and any developments in diplomatic efforts to resolve the ongoing conflict.

**US Expands Sanctions on Iran Amid Ongoing Economic Pressure**

The Trump administration has announced a significant expansion of sanctions targeting Iran, aiming to intensify economic pressure on the nation as the conflict approaches its six-month mark. At a press conference on Monday, Treasury Secretary Scott Bessent described the initiative as an “economic D-Day,” signaling a critical moment for countries and entities engaged in business with Iran.

Bessent emphasized that the new sanctions would serve as a final warning for nations to sever their economic ties with Iran or face repercussions, including exclusion from the dollar-based financial system. “We are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” he stated.

The US Treasury Department has conducted a thorough investigation into the networks and financial channels that Iran utilizes to smuggle oil and evade existing sanctions. As part of this effort, the department has identified five key sectors—digital assets, technology, gold, aviation, and shipping—that are critical to the Iranian economy and have been targeted for sanctions.

In total, nearly 60 entities, individuals, and vessels have been sanctioned as part of this latest round of measures. The US has particularly focused on China, which has been the largest buyer of Iranian oil for several years. Although Washington has intensified its scrutiny of Chinese purchases, it has yet to designate larger Chinese banks that may be facilitating these transactions.

The ongoing conflict with Iran has had a notable impact on global energy prices, which have surged as a result of the tensions. While heavy fighting has decreased, diplomatic efforts to resolve the situation have stalled, and shipping routes through the Strait of Hormuz remain obstructed, contributing to the elevated energy costs.

As the sanctions take effect, President Trump faces declining approval ratings, with only 33 percent of Americans expressing support for his performance according to a recent Reuters/Ipsos poll. The administration maintains that these economic measures are essential to prevent Iran from developing nuclear weapons.

The US has a long history of imposing sanctions on Iran, primarily aimed at limiting the country’s oil revenues, aviation capabilities, and military procurement. These sanctions have also targeted the Islamic Revolutionary Guard Corps, a key player in Iran's economy. Despite the restrictions, Iran has demonstrated resilience by quickly establishing new front companies and alternative entities to circumvent the sanctions.

As the situation develops, the US government continues to work with international partners to target any sources of Iran’s illicit revenue, reinforcing its commitment to isolating Tehran economically until it alters its behavior on the global stage.

Source: Cyprus Mail
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