The Trump administration announced on Monday an extension of secondary sanctions that can be enforced on entities and countries engaging in business relations with Iran. This move intensifies economic pressure on Tehran as the conflict approaches six months. Treasury Secretary Scott Bessent labeled the initiative as an “economic D-Day,” serving as a final warning for countries to sever ties with Iran or risk having key companies and entities excluded from the dollar-based financial system.

Bessent stated, “We are initiating an economic offensive against Iran’s global financial connections. Our goal is to cut every economic lifeline that supports this oppressive regime until Tehran is isolated.” The U.S. Treasury Department identified and targeted the networks, facilitators, and financial channels used by Iran for oil smuggling and sanctions evasion. Collaborating with U.S. partners, Washington aims to disrupt any sources of Iran’s illicit revenue.

The Treasury Department has imposed determinations on five sectors – digital assets, technology, gold, aviation, and shipping – that Iran utilizes to sustain its economy. Sanctions have been placed on close to 60 entities, individuals, and vessels. China, a significant purchaser of Iranian oil, has faced increased scrutiny to halt purchases, although larger Chinese banks potentially enabling the trade have not been designated yet.

Iran had threatened military retaliation and further reductions in Gulf oil exports in response to potential U.S. economic actions. Iranian Finance and Economic Affairs Minister Ali Madanizadeh affirmed readiness for U.S. sanctions, stating, “We are fully prepared for the U.S. sanctions.” Iranian Brig-Gen. Hossein Mohebbi, a spokesperson for the IRGC, warned of severe repercussions on U.S. vital interests and energy chokepoints if Iran’s infrastructure is endangered.

As the U.S.-Iran conflict nears six months, global energy prices have surged, and diplomatic efforts to resolve the crisis have stalled. Trump’s approval rating has declined, with only 33% of Americans approving of his performance. The U.S. has upheld sanctions against Iran for years, primarily targeting oil revenues, aviation, cryptocurrency activities, weapons procurement, and IRGC-affiliated businesses. Despite sanctions restricting access to the dollar-based financial system, Iran has adeptly established new front companies and vessel registrations to evade them.