‘ECONOMIC D-DAY’: US Treasury to unveil new financial pressure campaign against Iran Monday
The Trump administration is expected to intensify economic pressure on Iran this week in an effort to force concessions as negotiations stall.
WASHINGTON —
The U.S. Treasury Department is expected to unveil a new phase of financial pressure against Iran and its partners on Monday, after President Donald Trump promised an “ECONOMIC D-DAY.”
Trump warned last week that the plan would crack down on other countries that have continued to allow their businesses, financial institutions, and other entities to offer Iran a lifeline, as his administration has sought to isolate Tehran’s economy through sanctions and an ongoing naval blockade.
“Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — it all needs to stop NOW. You know who you are,” Trump wrote on Truth Social.
The details of the plan were not yet known as of Sunday night, including whether the Trump administration would directly target China, one of Iran’s primary economic partners. That could risk raising tensions ahead of a high-stakes meeting between Trump and Chinese President Xi Jinping slated for next month.
Speaking to CNBC last week, Treasury Secretary Scott Bessent declined to comment when asked about potential action against the Chinese government, noting that “many conversations are best to have in private.”
Bessent generally framed the announcement as a shift toward economic warfare, rather than a return to full-scale war. It’s an effort to force concessions out of Tehran as peace negotiations stall.
Bessent also responded to critics who doubt that the strategy will make a difference, since Iran has been subject to steep sanctions for decades.
“I see lots of reports that say, ‘Oh, well, this has never worked.’ It does work, because we have a combination. It is a one-two punch. We have the blockade, and we are going to have the toughest sanctions in history,” Bessent told CNBC.
Ahead of Monday’s announcement, Iran’s currency hit a record low, but Tehran showed no signs of backing down over the weekend.
The new head of Iran’s top security body warned Sunday that Tehran will see any country’s support for new U.S. economic measures against the Islamic Republic as an “act of war.” Iran continues to seek leverage over the global economy by claiming control over the Strait of Hormuz, a crucial oil shipping route.
