US widens Iran sanctions as Tehran threatens to halt Gulf oil flows

WASHINGTON

The United States on Aug. 24 launched a broad economic campaign against Iran, sanctioning nearly 60 entities, individuals and vessels and warning third countries that continued dealings with Tehran could expose them to U.S. measures.

Iran responded by threatening to halt oil exports through the Strait of Hormuz and elsewhere in the Persian Gulf if other countries supported Washington’s campaign.

The Treasury Department said Operation Economic Outcast expanded the scope for secondary sanctions in five sectors: digital assets, technology, gold, aviation and shipping.

Treasury Secretary Scott Bessent said Washington was “entering the endgame” and described the campaign as an “economic D-Day.”

“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said.

The campaign puts pressure on governments, companies and financial institutions that continue to facilitate Iranian oil sales or financial transactions.

Bessent accused Iran’s trading partners of buying and transporting its petroleum, channeling funds through exchange houses and free-trade zones, tolerating ship-to-ship fuel transfers and allowing Tehran to use their banking and transport systems.

He said each country had been given a deadline to end activities identified by Washington, without disclosing the time frames. Failure to comply would prompt unilateral action by the Treasury, he added.

Financial institutions found to be facilitating money laundering or sanctions evasion on Iran’s behalf could also be cut off from the U.S. dollar system.

The Treasury said the latest sanctions targeted networks involved in procuring nuclear and missile technology, a cyber group directed by Iran’s Ministry of Intelligence and Security and oil revenue networks operating through brokers, companies and shadow-fleet vessels.

The networks operated in several jurisdictions, including the United Arab Emirates, Hong Kong, China, Singapore, Switzerland and Europe, it said.

China, Iran’s largest oil customer, rejected Washington’s pressure campaign. Foreign Ministry spokesperson Lin Jian said sanctions would heighten tensions and serve no one’s interests, urging restraint and a return to dialogue.

Beijing would closely follow developments and take measures to protect its legitimate rights and interests, he added.

Tehran, meanwhile, warned other countries against joining the U.S. campaign.

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said that if the economic pressure continued, “not a single drop of oil will be exported” through the Strait of Hormuz or elsewhere in the Persian Gulf.

Iran would regard any country’s participation in or support for Washington’s campaign as “an act of war,” he added.

Iranian lawmakers have also moved forward with plans to charge vessels using the Strait of Hormuz. Parliament’s National Security and Foreign Policy Committee on Aug. 23 approved a provision allowing fees for navigation, environmental, fuel, insurance, security and other services.

The proposal must still be approved by the full parliament and reviewed by the Guardian Council before it can take effect.