WRAPUP 8-US unveils 'economic D-Day' of sanctions to isolate Iran

The U.S. on Monday announced an expansion of secondary sanctions it hopes will "sever every economic ‌lifeline" that sustains Iran, U.S. Treasury Secretary Scott Bessent said at a press conference. Bessent unveiled what he described as an "economic D-Day" that aims to give a final warning to countries to cut their business ties with Iran or risk having key companies and entities cut off from ‌the dollar-based financial system. "We are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to ‌sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent said. The move is part of U.S. efforts to put pressure on Iran to end the attacks on ships in the Gulf and, more recently via its allies, in the Red Sea, that Tehran launched after the U.S. and Israel began air ⁠strikes against ​it in February. Iran has ⁠said it will have the opposite effect.

Iran has spent decades under layers of U.S. and international sanctions that have battered its economy but have not deterred its leadership. Bessent ⁠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 U.S. President Donald Trump and Chinese President Xi Jinping, with any curbs on China's exports of critical minerals especially sensitive. Asked about Chinese ⁠banks ​on Monday, Bessent said, "We want to make clear here today that no one is above the reach of U.S. sanctions." The Chinese foreign ministry said sanctions and pressure tactics do not help and Beijing would do what was necessary to protect China's interests. Bessent said ⁠the U.S. Treasury Department has mapped the networks, facilitators and financial channels that Iran uses to smuggle oil and evade sanctions. He ⁠said Washington would be working with ⁠U.S. partners to target any source of Iran's "illicit revenue." (Additional reporting by Andrea Shalal and Michael Martina and Kanishka Singh in Washington, Menna Alaa El-Din, Yasmine Ghania and Eman Abouhassira in Cairo and Rick ‌Noak in Islamabad; Writing ‌by Daniel Trotta, Philippa Fletcher and Brad Brooks; Editing by Sharon Singleton, ​Scott Malone and Cynthia Osterman)