Russia

US threatens Iran with ‘financial violence’

RT English · 2026-08-31

AI SUMMARY

• What happened: The US announced a series of new secondary sanctions targeting foreign banks involved with Iranian funds, with Treasury Secretary Scott Bessent describing the approach as "financial violence." This comes amid escalating military tensions, including recent US strikes on Iranian positions. • Why it matters: The sanctions aim to isolate Iran economically and could significantly impact international banks and companies that engage with Iran, particularly affecting China's trade, as it is Iran's largest trading partner. • What to watch next: Monitor the implementation of these sanctions and their effects on foreign banks, as well as potential retaliatory actions from Iran and responses from countries like China and Russia regarding the US's pressure campaign.

**Title: US Intensifies Economic Pressure on Iran with New Sanctions**

The United States is set to escalate its economic pressure on Iran through a series of new secondary sanctions, targeting foreign banks and financial institutions involved with Iranian funds. Treasury Secretary Scott Bessent announced that these sanctions will be implemented weekly, with banks being the primary focus of the initiative. This strategy aims to cut off foreign banks from the dollar-based financial system if they engage in transactions with Iran.

The announcement of these sanctions coincides with a recent uptick in military tensions between the US and Iranian forces. On Sunday, the US military conducted strikes on two Iranian rocket launchers located on Larak Island, situated near the strategically important Strait of Hormuz. The US claims that these forces were preparing to launch rockets containing sea mines into the waterway, a critical route for approximately 20% of the global crude oil trade. In response, Iran reported casualties among both military personnel and civilians, and retaliated early Monday by claiming to have inflicted significant damage on two US military bases in Jordan.

During a press briefing ahead of a G20 finance meeting in Asheville, North Carolina, Bessent emphasized the urgency of severing economic ties with Iran. He stated, “You’re going to see a lot more of these [sanctions] every week,” and underscored the importance of G20 nations aligning with US policies, warning that those who do not risk facing secondary sanctions themselves. “There can be no leakage,” he added, indicating a stark choice for international partners: “You’re either with us or you’re with the Iranians.”

As part of this renewed campaign, Bessent revealed plans to target an unnamed bank in the coming week. He characterized the US approach as one of “financial violence” if necessary, indicating a willingness to take aggressive measures against entities that engage with Iran.

This announcement follows recent actions by the US Treasury, which targeted the United Arab Emirates operations of Banque Misr, Egypt’s second-largest bank. US officials allege that the bank processed approximately $1.8 billion for companies linked to Iran's shadow-banking network between January 2024 and June 2026. The measures proposed could lead to the bank’s Emirati branches being cut off from essential correspondent accounts.

The current sanctions initiative is part of Operation Economic Outcast, launched by the Trump administration earlier this month. This operation aims to financially isolate Iran and expand the reach of secondary sanctions against foreign companies that conduct business with Tehran.

The sanctions campaign is expected to exert significant pressure on China, which is Iran’s largest trading partner and a major buyer of its oil. China has consistently opposed US secondary sanctions, asserting that its trade with Iran is lawful and warning against measures that target Chinese entities.

Russia has also voiced its opposition to the US pressure campaign. Foreign Ministry spokeswoman Maria Zakharova stated last week that Moscow “categorically” opposes unilateral sanctions and intends to coordinate with Tehran and other nations in response to Washington’s restrictions.

As the situation evolves, the implications of these economic measures and military actions could have far-reaching effects on international relations and the global oil market, particularly given the strategic importance of the Strait of Hormuz. The unfolding events highlight the complex interplay of military and economic strategies in US-Iran relations, as both sides navigate a tense landscape marked by mutual distrust and escalating confrontations.

Source: RT English
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