Bessent Unveils Iran Sanctions as UAE Halts Trade
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- Treasury Secretary Scott Bessent unveiled a new sanctions campaign Monday designed to "sever every economic lifeline" sustaining Iran's regime, warning nations doing business with Tehran they would "share in the isolation of a withering regime."
- The U.S.-Iran war has stretched past six months past a failed 60-day ceasefire deadline, with Trump's stated goal shifting from curbing nuclear ambitions to regime change to prying the Strait of Hormuz from Iran's grip.
- The UAE announced it is halting all trade and financial transactions with Iran, having been the biggest importer of Iranian goods worldwide at roughly $21 billion in 2024, according to the WTO.
- China purchased an estimated $31 billion in Iranian crude oil in 2025 — nearly 45% of Iran's government budget — though Bessent said those imports plunged roughly 40% from prewar levels due to the U.S. naval blockade.
- Iran's shipping costs per container soared from $3,000 before the blockade to $12,000 afterward, according to Iran-China Chamber of Commerce head Majid-Reza Hariri, who called the blockade "worse than the war."
- Iran's security chief Mohsen Rezaei threatened "seismic" retaliation against countries joining Trump's economic war by targeting tankers on alternate oil shipping routes so "not even a single drop of oil will leave from the region."
Why it matters: The campaign's success turns on whether China — buyer of an estimated $31 billion in Iranian oil in 2025 and nearly half Iran's government budget — cuts imports; analysts warn sanctioning Chinese entities could cost the U.S. any broader trade deal with Beijing, while Iran has already threatened retaliation against Gulf neighbors cooperating with sanctions.
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