US Treasury Secretary Scott Bessent has unveiled a new phase of Washington's economic campaign against Iran, this time aimed not only at sanctioned Iranian institutions but at the international networks Tehran has used to keep money and goods moving.
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money → unveil → networks
Speaking on August 24, Bessent said the United States would target what he called five economic lifelines: digital assets, technology, gold, aviation and shipping.
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he → speak → what
He also warned foreign entities that help the country illicitly move money around.
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country → warn → money
"Any entity that facilitates money laundering for Iran will be removed from the US dollar-based financial system," Bessent said.
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Bessent → facilitate → system
"The countdown starts now."
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countdown → start → ?
The approach represents an effort to tighten secondary sanctions, putting pressure on companies, financial intermediaries and trading partners outside Iran rather than simply adding restrictions on an economy already heavily sanctioned.
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approach → represent → economy
The US announced measures against around 60 individuals, entities and vessels.
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US → announce → individuals
But it stopped short of targeting major Chinese banks, highlighting the limits of how far the US may be willing to push enforcement against Iran's biggest remaining trading partner.
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US → stop → partner
How Iran has been evading US sanctions
For years, Iran has relied on networks outside the formal banking system to move money.
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Iran → evade → money
Exchange houses, gold, cryptocurrency, front companies and opaque shipping networks have helped Iran bypass sanctions.
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Iran → help → sanctions
The latest US strategy appears designed to make those methods more difficult by increasing the cost for foreign intermediaries and comes at a vulnerable moment for Iran.
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methods → design → Iran
Oil exports have fallen sharply amid US efforts to disrupt Iranian oil shipments.
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exports → fall → shipments
Shipments to China, Iran's main oil customer, dropped to about 534,000 barrels per day in August from 823,000 in July and from a peak of around 1.58 million barrels earlier this year.
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Shipments → drop → barrels
At home, food prices rose around 128% year on year in July, according to official data cited by Reuters news agency.
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prices → rise → agency
Iran's currency has lost so much value that many transactions, including property and car sales, are now conducted in US dollars.
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transactions → lose → dollars
Advertisements are sometimes even priced in dollars.
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Advertisements → price → dollars
Rising inflation hits Iranian businesses
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inflation → rise → businesses
A building materials seller in the capital, Tehran, told DW that inflation has become so severe that simply holding goods can sometimes be more profitable than selling them.
"If I keep something in my warehouse for a month, its price may rise by more than the profit I would make by selling it today," he said.
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he → tell → it
He also owns a stone-cutting business and said fulfilling older contracts has become increasingly painful because replacement materials may cost considerably more a few weeks later.
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materials → own → more
And raising prices offers no easy solution.
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raising → raise → solution
"If I increase the price beyond a certain point, nobody can afford to buy it," he said.
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he → increase → it
The restrictions also disrupt how private companies pay suppliers, import raw materials and maintain employment.
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companies → disrupt → employment
Another Iranian who works at a trading company told DW that more than 70% of its employees had been laid off during the past six months.
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% → work → months
The company imported raw materials for various personal products and previously transferred payments through exchange houses in the United Arab Emirates.
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company → import → Emirates
"Now no exchange house is willing to work with us," the employee said.
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employee → work → us
How sanctions affect Iranian businesses abroad
The effects are also spreading to Iranian businesspeople outside the country.
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effects → affect → country
An Iranian businessman who moved to Dubai told DW that he had previously owned several cosmetics and hygiene brands in Iran.
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he → move → Iran
Restrictions on imports and difficulties obtaining raw materials eventually pushed him to relocate.
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Restrictions → obtain → him
But since the war, that has changed, he said.
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he → change → war
"These days, having an Iranian passport makes almost every transaction more difficult," he told DW.
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he → have → DW
He said Iranian entrepreneurs are increasingly uncertain whether banks will maintain their accounts or whether residency rules could be tightened.
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rules → say → accounts
"In an environment where there is no stability and the outlook is unclear, you cannot really run a business," he said.
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he → be → business
Can more sanctions change Tehran's behavior?
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sanctions → change → behavior
Alireza Salavati, a London-based political economy commentator, is skeptical that the new US measures will produce a fundamental strategic shift.
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measures → base → shift
Iran is already sanctioned across most major sectors, he told DW.
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he → sanction → DW
Further restrictions may involve expanding enforcement of existing networks rather than creating entirely new forms of economic pressure.
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restrictions → involve → pressure
"Their principal effects are likely to be psychological, intensifying inflationary expectations," Salavati said.
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Salavati → intensify → expectations
Salavati also warns that economic pressure could weaken the remaining middle-income and professional groups that traditionally provide space for more moderate politics.
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that → warn → politics
Rather than producing rapid political change, he believes the pressure could deepen polarization and encourage the state to reduce already limited subsidies and social assistance.
Could US sanctions strengthen Iran's shadow economy?
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sanctions → produce → economy
The more Washington restricts formal financial channels, the stronger the incentive becomes to develop informal ones.
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incentive → restrict → ones
…and 6 more, not listed.
