US expands sanctions in what it calls an 'economic onslaught' on Iran and its partners

US Treasury has mapped Iran's oil-smuggling networks and will work with partners to target illicit revenue

The Trump administration announced an expansion ​of sanctions it can impose on entities and countries that maintain business ties with ‌Iran around the world as Washington significantly ratcheted up economic pressure on Tehran.

At a press conference, Bessent unveiled what he described as an "economic D-Day" that aims to give a final warning to countries, companies and other entities to sever their ​business ties with Iran or risk being cut off from the dollar-based financial ​system.

"We are launching an economic onslaught against Iran’s financial connections around the globe," Bessent said.

The ​US Treasury Department has mapped the networks, facilitators and financial channels that Iran uses to smuggle oil and evade sanctions ​and said that Washington would be working with US partners to target any source of Iran's "illicit revenue."

Read More: Trump claims Iran 'completely collapsing' as US threatens 'economic D-Day'

The department said it has issued determinations against five sectors — digital assets, technology, gold, aviation and shipping — that it says the Iranian government is using to prop up its ​economy. The Treasury has also imposed sanctions on nearly 60 entities, individuals and vessels.

China has for several years ​been the biggest buyer of Iranian oil, and Washington has intensified its efforts to clamp down on Chinese purchases, but has ‌so ⁠far stopped short of designating larger Chinese banks that may be facilitating the oil trade.

Stay with us as we bring you reactions and analysis of the sanctions news here on this page.

US giving 'a warning shot,' Bessent says

At the end of the press conference, Bessent was asked why the sanctions targeting foreign entities doing business with Iran weren't being imposed on Monday.

Bessent responded: "We are giving everyone the opportunity to remedy bad behavior. Why would I want to blow up the global financial system?"

"We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious ... we believe that a warning shot and a level-set of expectations is appropriate," he added.

Bessent declines to share details on countries involved

As noted earlier, Bessent said Trump has been placing calls to world leaders with requests to cease interactions with Iran.

When asked to elaborate which countries Trump has contacted, Bessent refused to share details.

"We're not going to name names," he said.

He said the State Department and the Treasury are following up on Trump's calls, "telling the leaders, the countries and the entities exactly what we expect and the timelines."

Bessent added that they would see "ramifications of their actions" if they didn't act quickly.

"I'm not going to set timelines. But we do not have infinite patience here."

Asked about Chinese banks, Bessent points to quiet diplomacy

Asked why Chinese banks were not listed as some of the targeted institutions, Bessent said, "We want to make clear here today that no one is above the reach of US sanctions."

Also Read: Iranian parliament speaker mocks Trump with ‘Make America Hungry Again’ post

"We find that the best way to engage with countries is through quiet diplomacy. And we are level-setting with every country to tell them our expectations. We know who they are. They know who they are."

Bessent has previously urged cooperation from China, the biggest buyer of Iranian oil for ​several years, although the U.S. blockade of Iran's ports, renewed in mid-July, has already cut Iranian oil flows to China.

Experts say Washington is wary of Chinese ⁠retaliation for any sanctions on its banks ahead of expected talks next month between Trump and Chinese President Xi Jinping, with any curbs on China's exports of critical minerals especially sensitive.

Every country has a 'timeline' to shut down outlined activities

Bessent said that every country has a "defined timeline" to shut down activities the Treasury has identified.

"Teams from Treasury, State and the US military are now meeting with their global counterparts to tell them that the United States expects action," Bessent said.

"The clock just started ticking."

Trump is making phone calls to world leaders "with specific request to cease their interactions" with Tehran, Bessent said, adding that the US was already seeing results over the weekend.

He did not elaborate on the results.

"Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to the Iranian regime should expect to share in the isolation of a withering regime," he said.

Iran is 'fully prepared' for US sanctions, economy minister says

"We are fully prepared for the US sanctions; they cannot cut off our financial arteries," Iranian Economy Minister Ali Madanizadeh told the country's state TV.

Netanyahu applauds Trump administration

In a post on X, the office of Israeli Prime Minister Benjamin Netanyahu said Trump and Bessent "justly exact a steep price" from Iran and its allies:

Prime Minister Benjamin Netanyahu:

Congratulations President @realDonaldTrump and Secretary @SecScottBessent on the latest sanctions against the Iranian regime.

You justly exact a steep price from that cruel dictatorship and from those who assist its continued aggression.

— Prime Minister of Israel (@IsraeliPM) August 24, 2026

Trump losing the war and 'desperate,' says Democrat

Democratic US Senator Chris Murphy of Connecticut called Bessent's sanctions warning "desperate window dressing."

"Iran is winning the war. Trump is losing. And Americans are paying a huge, huge cost," he said in a series of posts on X.

9/ The bottom line: Trump lost the military campaign. And now he's desperate so in his humiliating defeat, he's selling this fake economic pressure to keep up the impression we are still fighting.

But the war is basically over. Tragically, Iran won. This is all window dressing.

— Chris Murphy 🟧 (@ChrisMurphyCT) August 24, 2026

"The bottom line: Trump lost the military campaign. And now he's desperate so in his humiliating defeat, he's selling this fake economic pressure to keep up the impression we are still fighting."