Key facts
- President Donald Trump plans to intensify economic pressure on Iran.
- The U.S. Treasury is preparing to implement new, unprecedented measures against Iran.
- Potential options include sanctions on Chinese refineries and banks that deal with Iran.
- Targeting entities that help Iran evade sanctions is also being considered.
- A land blockade involving Iran's neighbors is a discussed, though difficult, option.
- New tariff powers for countries aiding Iran's commerce may become available through legislation.
U.S. President Donald Trump has stated his intention to significantly increase economic pressure on Iran, with the Treasury Department signaling that new, unprecedented measures are imminent. These potential actions come amid ongoing efforts to curb Iran's war financing and nuclear program.
Experts suggest several avenues for escalating sanctions. One option involves targeting Chinese independent refineries, known as 'teapots,' which process a substantial portion of Iran's oil exports. While these refineries have limited exposure to the U.S. financial system, past sanctions have deterred larger entities. Additionally, the U.S. could impose secondary sanctions on major Chinese banks that facilitate billions of dollars in transactions for Iran, a move that could risk retaliation from Beijing.
The administration may also continue its 'whack-a-mole' strategy, sanctioning individuals and entities that help Iran evade existing measures, though experts note this approach has not fundamentally altered Iran's behavior. Further aviation sanctions are also possible, aimed at disrupting trade routes now that shipping through the Strait of Hormuz is blockaded. Some U.S. and Israeli officials have proposed a land blockade, which would require cooperation from Iran's neighbors, though its execution is considered difficult.
Legislation currently in the Senate could grant Trump new tariff powers, potentially applicable to countries that aid Iran's commerce and weapons procurement. However, the passage of this bill through the House of Representatives may face challenges due to concerns over tariff measures.