'Sever Every Economic Lifeline': US Announces Explosive Sanctions Against Iran

A day after threatening Iran with an economic D-Day, US Treasury Secretary Scott Bessent, in a news conference, warned that countries that continue to allow Iran to launder money will 'be removed' from the US dollar system. 

On Monday, Bessent spoke about new US sanctions that aim to block all potential sources of revenue for Iran and claimed that sanctions will also be slapped on countries that do not cut economic ties with the Islamic Republic.

Although he did not name what countries could face potential secondary sanctions from the US, Bessent said that it is "no longer acceptable to operate in the grey spaces" of the conflict.

#WATCH | Washington DC | US Treasury Secretary Scott Bessent says, "... The President is making phone calls to world leaders with specific request to cease their interactions with the regime, we are already seeing the results... Nations that facilitate any interactions with the… https://t.co/VguWPpZQm3 pic.twitter.com/jio6YGVf5Q

— ANI (@ANI) August 24, 2026

"Those who enable Tehran do not discount the cost of testing Washington's resolve. No nation should expect to enjoy the rewards of our system while helping those who seek to destroy it. It is now a time for world leaders to make a decision between prosperity and isolation, peace and terror, America and Iran," Bessent warned.

"Economic Engagement With Murderous Regime" To Face Sanctions

"Let there be no ambiguity as to the position of the United States," Bessent told a news conference. "An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power."

China, Turkey and the United Arab Emirates are Iran's largest trade partners.

The US' new pressure campaign aims to destroy Iran's economy six months into the war, in which Bessent said that countries not joining the sanctions will 'share in the isolation' of Iran.

"Let me clear: Any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system. The clock just started ticking," Bessent said.

In a response to questions about sanctions, Bessent said that any entity that facilitates transactions or helps Iran turn its oil into money will be "targeted".

Washington has said the new sanctions aim to put more pressure on an economy already battered by previous sanctions and a US naval blockade.

Trump Claims "Iran Is Completely Collapsing"

Meanwhile, earlier in the day, in a post on Truth Social, Trump claimed that Iran is "completely collapsing".

In another post, Trump claimed that the Republicans are winning against Iran, a nation he described as one falling in an "economic and military death spiral".

Iran's Currency Hits Record Low

Iran's currency has hit a record low, with the rial dropping to 2.02 million to the US dollar as trading opened on currency markets.

The currency had already been under pressure before the U.S. and Israel attacked Iran on Feb. 28, as Iran faced double-digit inflation and negative growth. The rial has repeatedly hit new lows as nearly six months of war have taken an even greater toll.

Iranians find daily staples increasingly unaffordable. Since the war began, rice is up some 60 per cent, and beef prices are more than 150 per cent higher. The International Monetary Fund forecasts that gross domestic product will contract more than 5 per cent.