US threatens countries doing business with Iran, but holds off on penalties for now

InternationalTop NewsUS threatens countries doing business with Iran, but holds off on penalties for nowBy Reuters -Aug 25, 2026Add ARY News on GooglePicture credit: ReutersAAResizeUS President Donald Trump’s administration on Monday warned countries to cut their business ties with Iran or face secondary sanctions as part of what it ​billed as an “economic D-Day,” but the Treasury Department stopped short of actually imposing penalties. As the war with Iran nears its six-month mark, Treasury Secretary Scott Bessent said the US was ‌launching an “economic onslaught” against Iran’s financial connections around the globe. But he declined to say what specific countries would be targeted, or when those penalties would take effect. The Treasury Department announced new sanctions on 60 individuals, entities and vessels but that list did not include any of the Chinese financial institutions suspected of facilitating Iran’s oil trade. “Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure ​period, but they should know that that will move very quickly and that we are serious,” Bessent told a press conference. China has for several years been the biggest buyer of Iranian oil, ​and Washington has intensified its efforts to clamp down on Chinese purchases, but has so far stopped short of targeting Chinese banks with sanctions. Asked whether the ⁠Treasury was now prepared to move against a Chinese bank, he said that no country was out of the reach of U.S. sanctions, adding: “If they facilitate transactions and are part of the ecosystem ​that turns Iranian oil into money, into repression, they will be targeted.” With Trump and Chinese President Xi Jinping scheduled to meet in Washington in late September, new sanctions on Chinese banks could sour prospects ​for extending a deal struck last November to keep Chinese rare earths flowing and cap US tariffs. Tuesday’s action targeted other businesses in China, the U...