Treasury Secretary Scott Bessent says new U.S. secondary sanctions in the pipeline aim to block all potential sources of revenue for Iran, telling nations to cut economic ties to Tehran or face U.S. retaliation.
Bessent added it’s “no longer acceptable to operate in the gray spaces” of Iran conflict as US threaten sanctions against Tehran’s trade partners.
The treasury secretary did not name what countries could face potential secondary sanctions from the United States, but China, Turkey and the United Arab Emirates are Iran’s largest trade partners.
“Let there be no ambiguity as to the position of the United States,” Bessent said at a Monday afternoon news conference. “An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power.”
When asked that the U.S. could go soft on China to maintain the fragile trade truce between the world’s two largest economies, Bessent said “no one is above the reach of U.S. sanctions”
“If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted,” Bessent said.
Experts have said the U.S. is likely to carefully calibrate its actions on China, just a month before Chinese leader Xi Jinping is expected to visit the U.S. to keep the already-fraught relations from falling out.
The treasury secretary said Trump has been “making phone calls to world leaders with specific request to cease their interactions” with Iran and has already seen results.
The UAE announced last week that it was suspending all trade, commercial exchanges, and financial transactions with Iran until further notice.
“I am confident the president, as you all know, is quite persuasive,” Bessent said.
Bessent said that Treasury and State Department officials are following up with calls and visits with officials from countries and entities it wants to see take action and laying out “exactly what we expect and the timelines.”
