Treasury Secretary Scott Bessent announced on August 24, 2026, that the United States will impose new sanctions on countries and entities that conduct business with Iran. This initiative aims to increase pressure on the Iranian government without resorting to military action.
Bessent described the plan as an "economic D-day" and stated that the expanded "secondary" sanctions will be the primary strategy against Iran until at least after the upcoming midterm elections. He emphasized that any economic engagement with Iran would expose those involved to U.S. sanctions.
While Bessent did not set a specific deadline for compliance, he noted the urgency of the situation, stating, "We do not have infinite patience here." He also indicated that the sanctions would apply universally, including to countries like China.
Despite the announcement, experts suggest that the effectiveness of the new sanctions will depend on the U.S. ability to rally its Western allies to enforce them. Previous sanctions targeting Iran's oil sector have been only partially enforced.
Iran's economy is currently facing significant challenges, with the rial reaching a new low of 2 million rials to the U.S. dollar. The ongoing U.S. naval blockade has severely restricted Iran's oil exports, exacerbating the economic crisis. U.S. officials report that soaring inflation is increasing food prices and that the Iranian government is struggling to pay salaries for public workers.
In response to the sanctions, Iranian leaders have attempted to downplay the threats and have warned of potential retaliation against cooperating countries. Some officials have acknowledged the risk of economic collapse, with Iranian President Masoud Pezeshkian urging for an end to the conflict with the U.S. from a position of strength.