US threatens sanctions on Iran’s trading partners
Treasury Secretary Scott Bessent said countries were given "defined timelines" to halt business with Iran or face US sanctions.
WASHINGTON — The US Treasury Department on Monday warned of secondary sanctions for countries doing business with Iran, announcing the launch of “Operation Economic Outcast” as the next phase of a pressure campaign aimed at ending the six-month war.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Treasury Secretary Scott Bessent said at a news conference unveiling the sanctions.
Bessent said President Donald Trump was placing calls to world leaders urging them to “cease their interactions with the regime.” Pressed by reporters, Bessent declined to name any of those countries or single out China, Iran’s top trading partner and biggest purchaser of its oil.
The Treasury Department has previously imposed sanctions on independent “teapot” refineries in China that purchase Iranian oil but has so far stopped short of sanctioning the Chinese banks that process those transactions. Analysts warn Beijing would respond with significant countermeasures should Washington target its financial institutions with sanctions.
“Every country has a defined timeline to shut down activities we have identified. If they do not take action, we will do so unilaterally through Treasury authorities,” Bessent said.
Without providing further details, Bessent said an unnamed financial institution would be sanctioned by the end of this week.
The United Arab Emirates last week announced it was halting all trade, commercial exchanges and financial transactions with Iran “until further notice." The UAE is Iran’s biggest trading partner in the Middle East, with bilateral trade reaching roughly $28 billion as of 2024, according to World Trade Organization figures.
On state television Saturday, Iran’s top national security adviser, Mohsen Rezaei, vowed “earthquake-like” retaliation if the Trump administration imposed additional sanctions and warned any country cooperating would be “considered an enemy.”
This developing story has been updated since initial publication.
