Washington: The United States is preparing to impose what it describes as the toughest sanctions in history on Iran as Washington increases economic pressure on Tehran and tries to avoid another major expansion of military action.
US Treasury Secretary Scott Bessent said the new measures would form part of a wider effort to weaken Iran financially and reduce its ability to continue the conflict. More details about the sanctions are expected to be announced next week.
The move follows a warning from US President Donald Trump that countries, companies and financial institutions that continue providing economic support to Iran could also face consequences. His administration is seeking to cut the financial channels that allow Tehran to earn money from oil sales, international trade and other business activities.
The latest strategy places particular attention on China, which remains the biggest buyer of Iranian oil. Washington wants Beijing to cooperate with its campaign and reduce economic ties with Tehran. However, China has opposed unilateral sanctions and has continued to call for diplomacy to resolve the crisis.
This creates a difficult situation for the United States. If Washington imposes stronger penalties on Chinese companies, banks or oil buyers, tensions between the world's two largest economies could increase. At the same time, allowing Iranian oil to continue reaching major international buyers could weaken the impact of the sanctions.
Iran has strongly rejected the American pressure. Iranian officials have described the measures as economic terrorism and have shown little indication that Tehran is prepared to surrender to US demands.
Iran has faced American sanctions for decades and has developed several ways to continue trading despite restrictions. Oil has remained one of the country's most important sources of income. Iranian crude has continued reaching international markets through complicated shipping and trading networks even during periods of heavy sanctions.
The latest pressure also comes during a wider conflict that has lasted for nearly six months and has caused thousands of deaths. Attempts to establish lasting ceasefires and restore normal shipping through the Strait of Hormuz have failed.
The Strait of Hormuz remains at the centre of the crisis. Before the conflict, around one fifth of the world's traded oil passed through the narrow waterway. Disruption to shipping has created uncertainty in global energy markets and increased concerns about fuel supplies and prices.
Washington hopes that stronger economic pressure can help restore safe navigation through the strait while forcing Iran towards an agreement. The United States is combining sanctions with its existing naval pressure in an attempt to restrict Tehran's economic options.
However, increasing pressure on Iran could also have consequences far beyond the Middle East. Any serious reduction in Iranian oil exports or further disruption to shipping through Hormuz could push global oil prices higher. Countries that depend heavily on imported energy could face higher fuel, transport and production costs.
There are also questions about whether sanctions alone can force Iran to change its position. Tehran has lived under different forms of international and American restrictions for many years. Although sanctions have damaged the Iranian economy and contributed to inflation and financial hardship, they have not always produced the political changes sought by Washington.
The United States has already introduced numerous restrictions targeting Iranian individuals, companies, ships and financial networks. The latest plan appears designed to go further by increasing pressure not only on Iran but also on foreign businesses and countries that help keep Iranian trade moving.
Washington has also widened its financial campaign against groups it says are connected to Tehran. New measures announced this week targeted individuals accused of helping move large amounts of money for Hezbollah through a network involving Iran and several other countries.
For ordinary Iranians, another wave of economic restrictions could bring additional hardship. Greater pressure on banking, trade and government revenue could contribute to rising prices and make imported goods more expensive.
The coming days will therefore be important. Bessent is expected to explain the new sanctions in greater detail, including how Washington intends to enforce them against Iran's trading partners.
The success of the strategy could depend heavily on the response from China and other countries that maintain economic relations with Tehran. If major buyers reduce Iranian oil purchases, the pressure on Iran's economy could become much stronger. If they refuse, Washington may have to decide how far it is prepared to go in punishing foreign companies and governments.
For now, the confrontation is increasingly moving into the economic arena. Oil, banking, shipping and international trade are becoming important weapons in a crisis that continues to carry serious risks for Iran, the wider Middle East and the global economy.