WASHINGTON (AP) – Treasury Secretary Scott Bessent on Monday announced new sanctions targeting Iran and warned all countries doing business with the Islamic Republic to sever financial ties or face retaliation from the United States.
President Donald Trump’s inauguration brings new warnings to further isolate Iran from the rest of the global economy Last week, he promised to launch an “Economic D-Day.” against Tehran as the regime struggles to find a way out after nearly six months of war.
“We are on an equal footing with the countries and communicating our expectations. We know who they are and they know who they are,” Bessent told a news conference. “So when the hammer of the U.S. Treasury’s actions falls upon them, they will have no one to blame but themselves.”
US government promised new sanctions would increase pressure on Iran the economy is already exhausted Due to past sanctions and the US naval blockade. But Monday’s announcement provided few details and did not say which countries could face secondary sanctions. China, Türkiye, and the United Arab Emirates are Iran’s largest trading partners.
Mr. Bessent said President Trump had “called world leaders and specifically asked them to end all interactions with Iran,” which is already yielding results. Last week, the UAE announced: Suspend all trade, commercial and financial transactions with Iran Until further notice, following reports of missile attacks on Gulf states.
“As you all know, I’m sure the president will be very persuasive,” Bessent said, adding that the UAE’s decision was “not a coincidence.”
Shortly before the announcement, Iranian Parliament Speaker Mohammad Berger Qalibaf said the United States was not in an economic position to further restrict Iran’s relations with other countries.
“Iran’s trading partners have made it clear that they have not taken these statements into account anywhere in the media or in the messages sent to us,” Qalibaf, who has been Iran’s chief negotiator for the past six months, wrote in a post on X.
Iranian currency falls to record low
Hours before Bessent’s announcement, Iran’s currency hit an all-time low.
When trading began on the foreign exchange market, the rial depreciated to 2.02 million rials to the dollar. The official exchange rate of the Central Bank of Iran was about 1.5 million rials to the dollar, but most Iranians pay the market rate.
The currency was already under pressure before the US and Israel attacked Iran on February 28thIran faced double-digit inflation and negative growth. The rial repeatedly hit new lows as the nearly six-month war claimed more casualties.
Iranians find everyday necessities increasingly out of reach. Since the war began, rice has increased in price by about 60%, and beef prices have increased by more than 150%. The International Monetary Fund expects gross domestic product to contract by more than 5%.
Still, economic pressure has not yet translated into political pressure. Iran is significant strategic advantage: Attacks and threats against ships Strait of Hormuz Traffic on the vital waterway has come to a near standstill, damaging the global economy and mounting pressure on US President Donald Trump ahead of parliamentary elections.
As a result, the war has turned into a dispute over who controls the strait, through which before the conflict one-fifth of the world’s oil trade passed. Iran is currently refusing to fully restart unless ships can be recharged.
Oman is on the other side of the strait from Iran. Final stage of agreement on the plan For joint management of waterways. Oman’s foreign minister is scheduled to visit Iran on Tuesday.
Pakistani delegation visits Iran
Pakistan, which played a key role in brokering a 60-day ceasefire in June, sent a high-level delegation to Iran on Monday to encourage the United States and Iran to return to negotiations, two senior officials said. The officials spoke on condition of anonymity because they were not authorized to speak to the media about the records.
The military only authorized Field Marshal Asim Munir’s visit, saying it was aimed at easing tensions in the region.
Trump met with Munir ahead of the military commander’s visit to Iran, according to a person familiar with the discussions. The person spoke on condition of anonymity to confirm private conversations. Reuters first reported the call, citing a Pakistani official.
Munir met with Iranian Interior Minister Eskandar Momeni in Tehran, two senior officials said. Munir was accompanied by Pakistan’s Interior Minister Mohsin Naqvi and other officials. Munir was scheduled to stay in Iran overnight and meet with the Iranian president and other senior officials before returning to Pakistan.
His previous trip to Tehran in May helped pave the way for a memorandum of understanding signed by the United States and Iran in June.
In central Tehran, 73-year-old Sadegh Mahmoudi held out no hope for a resolution. He joined a line of about a dozen people who used their remaining savings to buy US dollars in case of further decline.
“There is no hope for agreement and peace,” he said.
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Amiri reported from New York. Associated Press reporter Nasser Karimi in Tehran, Iran; David Rising of Dubai, United Arab Emirates. Seung-min Kim in Washington; and Munir Ahmed in Islamabad contributed.
