Long queues formed at petrol stations in Tehran on Tuesday following the United States' announcement of fresh sanctions targeting Iran's economy. U.S. Treasury Secretary Scott Bessent stated the sanctions are intended to "sever every economic lifeline that sustains this tyrannical regime."
The newly announced sanctions follow six months of military stalemate in a war with Iran, with peace talks stalled and the Strait of Hormuz facing significant traffic disruption. The Treasury Department indicated that expanded secondary sanctions will target Iran's digital assets, technology, gold, aviation, and shipping sectors. Additionally, 60 individuals, companies, and vessels allegedly aiding Iran in oil revenue generation, weapons procurement, and cyber operations have been sanctioned. These measures impact entities globally, including those in the United Arab Emirates, Hong Kong, China, Singapore, and Europe.
Despite Iranian leaders downplaying the impact, citing decades of existing sanctions, residents expressed concern about the economic pressure. "Naturally, sanctions affect people's lives. People are being hurt, both those who are financially well-off and those who are financially weak," said Mehdi Yazdian, a 55-year-old realtor, who urged authorities to control prices. He added, "These sanctions have been in place for 47 years."
Iran has been contending with high inflation, which contributed to anti-government protests earlier in the year. Foreign rights groups reported that authorities' crackdown on these protests resulted in thousands of deaths, though the government attributed the violence to "terrorist acts" orchestrated by the United States and Israel.
U.S. President Donald Trump commented on the situation via Truth Social, criticizing Iran's handling of its military payments and its treatment of protesters, calling it a "humanitarian crisis of epic proportions." Bessent stated that countries not complying with the U.S. economic campaign would face "isolation," and that Trump was engaging world leaders to halt interactions with Tehran.
China, a significant purchaser of Iranian oil, opposed the sanctions and vowed to protect its interests. Bessent did not rule out targeting Chinese banks, asserting that any entity facilitating money laundering for Iran would be removed from the U.S. dollar system.
Iranian Economy Minister Ali Madanizadeh expressed dismissal of the U.S. threat, predicting "another defeat" for Washington and stating that Iran has a two-year plan to manage the situation. Saeed Laylaz, an economic expert in Tehran, described the new measures as consistent with the Trump administration's "maximum pressure" approach. Laylaz noted that years of isolation have made Iran's economy largely self-sufficient but raised doubts about the Iranian government's internal capacity to address issues like corruption, banking imbalances, and inflation through timely financial and economic policies.