US Treasury Poised to Broaden Secondary Sanctions on Iran, Source Reports

The U.S. Treasury Department is preparing to broaden the scope of its secondary sanctions on Iran, a move designed to intensify economic pressure on Tehran, a source familiar with the plans told Reuters. The action would expand the government's ability to penalize foreign entities and countries that continue to conduct business with Iran.

Sanctions Scope to Widen

The expected measures serve as a significant warning to international firms and governments to sever their commercial ties with Tehran. According to the source, who was not authorized to speak publicly, the policy aims to force an end to a nearly six-month conflict that has disrupted energy exports from the Gulf and through the Strait of Hormuz.

Secondary sanctions target non-U.S. entities, such as foreign banks, shipping companies, or manufacturers, that engage in transactions with a sanctioned country. The primary enforcement mechanism is the threat of cutting these entities off from the dollar-based financial system, a severe penalty for any major international business.

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'Economic D-Day' Pressure Campaign

U.S. Treasury Secretary Scott Bessent is expected to announce further details of the actions at a press conference on Monday. The source indicated Bessent will provide a broader overview of what he and President Donald Trump have termed an "economic D-Day" against Iran.

The announcement will reportedly make it clear that countries and their key commercial entities must choose between doing business with the United States or with Iran. This escalation of the economic pressure campaign highlights the administration's strategy of using the U.S. financial system's central role to achieve its foreign policy objectives.