US warns of retaliatory measures for nations doing business with Iran

The United States has warned every country trading with Iran to sever financial ties with Tehran. Announcing new economic sanctions on Iran on Monday, US Treasury Secretary Scott Bessent said countries that maintain such ties will face retaliatory measures from the US.

Under the campaign named 'Operation Economic Outcast', President Donald Trump himself has been calling world leaders directly, urging them to cut ties with Iran.

Bessent told reporters, "We are letting every country know our expectations. We know who they are. They know who they are. So when the Treasury Department's hammer comes down on them, they will have no one to blame but themselves."

Last week, Trump had promised to begin an 'economic D-Day' against Iran. Monday's announcement was the implementation of that promise, though no specific countries were named as potential targets. China, Turkey and the United Arab Emirates have the largest trade ties with Iran.

According to the Treasury Department, the new sanctions cover the digital asset, technology, gold, aviation and shipping sectors. Washington claims Iran uses these sectors to evade international sanctions, secure revenue and manage the economic pressure imposed on them.

Additionally, the Treasury imposed sanctions on nearly 60 entities, individuals and vessels for alleged involvement in the illegal procurement of nuclear and missile technology, cyber activities and oil smuggling. Several previously issued licences, including those for specific financial transactions with Iran and access for Iranians to US cultural and educational institutions, have also been suspended.

When asked why direct sanctions were not imposed, Bessent said he wanted to give countries time to withdraw. He said the impact of Trump's phone calls was already visible, citing the UAE's decision as an example.

Following a report of a missile attack last week, the UAE had announced a suspension of all trade, commercial and financial transactions with Iran until further notice. Bessent said this decision was "no coincidence."

As the Trump administration struggles to find a way out of the six-month-long war and Tehran grows increasingly inflexible, officials are believed to have been forced to turn to economic warfare due to dwindling critical weapons stockpiles. However, Defence Secretary Pete Hegseth said on Monday that he would not rule out further strikes on Iran during the current lull in fighting.

Shortly before Bessent's announcement, Iran's Parliament Speaker Mohammad Baqer Qalibaf responded, saying the US does not have the economic standing to further limit Iran's relations with other countries.

In a post on X, he said, "Iran's trading partners have made it clear through media and direct messages that they do not take these statements seriously."

Source: AP