U.S. Treasury to Detail New Sanctions Targeting Iran's Oil Trade
U.S. Treasury Secretary Scott Bessent is set to announce stricter enforcement of sanctions aimed at Iran's oil sector, with potential pressure on Chinese refineries that purchase Iranian crude.
The United States plans to tighten enforcement of existing sanctions on Iran rather than expand the sanctions list, according to a former Treasury official. The move, described as an “economic D-Day,” aims to curb Iran’s oil revenue by targeting small and medium-sized Chinese refineries that buy Iranian crude, which accounts for roughly 90% of Tehran’s exports, a U.S. congressional fact sheet shows.
“There will be some pressure on small, medium-sized teapot refineries in China who are purchasing Iranian oil. That will put more pressure on Iran’s revenue generation, and also the banks and exchange houses that allow the Iranian regime to repatriate some of that revenue and get access to foreign currency,” said the former official.
The Treasury Department has previously sanctioned independent Chinese refineries, but Beijing instructed its companies to disregard those restrictions in May. China does not list Iranian crude imports in its customs data.
Treasury Secretary Scott Bessent is expected to outline the new measures at a news conference on Monday, following an op-ed in the Financial Times in which he wrote that the United States is entering the “endgame” of its financial campaign against Tehran.
Iranian officials acknowledged the growing economic strain. President Masoud Pezeshkian said the country “cannot continue with war forever,” while security chief Mohsen Rezaei pledged to “neutralize the economic war.” The Iranian foreign ministry dismissed the U.S. threat as a “recipe for an abysmal return to full-scale classic colonialism.”
Oman’s foreign minister is scheduled to visit Tehran to discuss the Strait of Hormuz and regional security, and Pakistan’s army chief will also travel to Iran for talks.
U.S. officials warned that any Iranian military response to the economic pressure would be met with swift action. The Treasury’s upcoming announcement comes amid broader concerns about global oil markets and domestic inflation pressures in the United States.