US Treasury Secretary Scott Bessent unveils campaign to isolate Iran from global economy

Treasury Secretary Scott Bessent unveiled what he called an unprecedented US campaign to cut Iran off from the global economy, warning that countries and companies continuing to do business with Tehran could face American sanctions.

“We are launching an economic onslaught against Iran’s financial connections around the globe,” Bessent said Monday in Washington, describing the effort as the “economic asphyxiation” of the Iranian government.

The Trump administration is expanding the use of secondary sanctions against entities and countries that maintain economic ties with Iran as Washington intensifies pressure on Tehran nearly six months into the conflict.

Bessent said President Donald Trump is personally contacting world leaders with specific requests to end certain dealings with Iran. Countries will be given defined timelines to comply, after which the Treasury Department could act unilaterally.

The campaign is targeting five areas that Bessent described as critical Iranian economic lifelines: digital assets, technology, gold, aviation, and shipping.

Treasury also sanctioned nearly 60 individuals, entities, and vessels as part of the broader action announced Monday.

Bessent declined to provide a broader timeline for future measures or detail all the actions Washington could take against countries that continue trading with Iran.

Asked whether the US would be prepared to cut off major Chinese banks that facilitate Iranian trade, Bessent said no institution was beyond the reach of US sanctions. He did not identify China or another country by name.

The measures expand an existing campaign against Iran. In April, Bessent warned that Washington was prepared to use secondary sanctions against foreign financial institutions that continued supporting Tehran.

The latest push is intended to further isolate Iran and pressure Tehran as negotiations remain stalled and disruptions around the Strait of Hormuz continue to affect global trade and energy markets. 

Iran has operated under US sanctions for decades and has repeatedly relied on alternative financial networks and trading structures to maintain international commerce.

Bessent framed the new measures as part of what the administration has called an “economic D Day,” saying the objective is to sever the economic lifelines supporting Iran until the country is isolated from the global financial system.