The United States is preparing to dramatically expand pressure on Iran by threatening foreign companies and financial institutions with exclusion from the dollar-based financial system if they continue doing business with Tehran, according to a source familiar with the plans.
U.S. Treasury Secretary Scott Bessent is expected to unveil the measures on Monday as part of what he has described as the “greatest financial offensive ever” directed against an adversary.
The new strategy is expected to broaden the reach of U.S. secondary sanctions, potentially exposing businesses, banks and other entities in countries that maintain significant economic ties with Iran to punitive measures.
Washington is seeking to intensify pressure on Tehran over attacks on commercial shipping in the Gulf and Red Sea that have continued since the United States and Israel launched strikes against Iran in February.
Iran has rejected the pressure campaign and warned that further sanctions could trigger additional retaliation.
China, which has long been Iran’s biggest oil customer, is likely to be one of the most consequential targets of the new sanctions regime. Iranian crude exports to China have already fallen sharply following the renewed U.S. blockade of Iranian ports in July.
Beijing criticized Washington’s approach on Monday, saying sanctions and pressure would not resolve the crisis and pledging to defend Chinese interests.
The United States nevertheless faces a delicate calculation over China. Sanctioning major Chinese banks could provoke retaliation ahead of expected talks next month between U.S. President Donald Trump and Chinese President Xi Jinping, particularly amid tensions over critical mineral exports.
The measures could also affect Iranian trading relationships with countries including Turkey, Iraq and India.
Bessent is expected to focus enforcement on oil traders, shipping companies, buyers, currency exchanges and financial networks that help Iran generate foreign currency and finance imports. Aviation-related entities could also come under increased scrutiny.
Trump has separately threatened tariffs against countries that continue doing business with Iran, although the U.S. Supreme Court has struck down the legal basis previously used for such measures.
Writing in the Financial Times, Bessent described Monday as an “economic D-Day,” saying Washington was preparing an unprecedented financial campaign against Tehran.
Pakistan seeks diplomatic opening
The sanctions push comes as Pakistan attempts to revive diplomatic contacts between Washington and Tehran.
Pakistan’s army chief, Gen. Asim Munir, arrived in Iran on Monday for talks aimed at promoting what Islamabad described as regional peace and stability.
Pakistani sources said U.S. President Donald Trump spoke with Munir last week and encouraged him to help bring Iran back into negotiations.
Munir, who has developed a close relationship with Trump, was expected to meet senior figures close to Iran’s leadership during the visit.
The White House confirmed Trump’s conversation with Munir but did not disclose details.
Official face-to-face negotiations between Washington and Tehran have not taken place since June, although direct U.S.-Iranian military strikes have largely subsided in recent weeks.
Saudi tanker attacked in Red Sea
Regional tensions remained high Monday after a projectile struck a tanker west of the Saudi Arabian port of Yanbu, causing a fire on its main deck, according to the United Kingdom Maritime Trade Operations.
Saudi Arabia’s national shipping company later confirmed that one of its vessels had been attacked.
Iran-aligned Houthi forces in Yemen said they had targeted a vessel in the area.
The Houthis announced last month that they would seek to block Saudi oil exports redirected through the Red Sea as exporters attempted to avoid disruptions around the Strait of Hormuz.
Iran has meanwhile issued fresh warnings to commercial shipping, saying vessels must receive permission to transit the Strait of Hormuz and threatening retaliation against ships accused of violating its restrictions.
Shipping through the strategically vital waterway remains severely disrupted, contributing to higher global energy prices.
Iran faces deepening economic pressure
Thousands of people have been killed, most of them in Iran and Lebanon, since the United States and Israel began military operations against Iran on February 28.
The strikes have significantly weakened Iran’s conventional military capabilities, damaged infrastructure and intensified pressure on an economy already struggling with inflation, energy shortages and declining production.
Iran’s currency fell to another record low on Monday, leaving the rial around 25% weaker than its January level.
Tehran has nevertheless continued threatening shipping and neighboring Gulf states while warning that new U.S. financial measures could lead to further escalation.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said Sunday that additional sanctions would result in even greater Iranian pressure on maritime traffic through the Strait of Hormuz.
Oil prices eased Monday after two weeks of gains as traders took profits ahead of Washington’s expected sanctions announcement.
The condition of Iran’s nuclear program remains unclear following months of U.S. and Israeli military operations aimed at severely degrading Tehran’s nuclear capabilities.