US expands sanctions on Iran’s oil trade and financial networks
The US Treasury on Monday unveiled an expanded set of secondary sanctions aimed at severing Iran’s oil trade and financial networks, including banks and companies that help Tehran evade existing restrictions.
Source: Channel NewsAsia · August 24, 2026 at 10:01 PM · AI-assisted report
CorroboratedWASHINGTON, 25 AUGUST 2026 —
The US Treasury on Monday unveiled an expanded set of secondary sanctions aimed at severing Iran’s oil trade and financial networks, including banks and companies that help Tehran evade existing restrictions.
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Treasury Secretary Scott Bessent called the move an “economic D-Day,” saying Washington would cut “every economic lifeline” keeping Iran’s government afloat. Speaking at a press conference, he said the penalties would apply worldwide but declined to name any target countries or set an effective date.
The sanctions intensify US efforts to pressure Iran into stopping attacks on shipping in the Gulf and Red Sea, which followed US and Israeli airstrikes in February. Iran has dismissed the measures and warned it would retaliate, noting that decades of US and international sanctions have not stopped its leadership.
Nearly 60 entities, individuals and vessels were added to the sanctions list. The Treasury flagged five sectors—digital assets, technology, gold, aviation and shipping—as key channels for Iran’s “illicit revenue.” Bessent said Washington has mapped smuggling routes and financial facilitators, vowing to block Iran’s access to dollar-based trade.
China, the world’s largest buyer of Iranian oil for years, remains a focal point. Bessent urged Beijing to cooperate, though renewed US port blockades since mid-July have already reduced Iranian crude flows to China. Analysts warn of possible Chinese retaliation if Washington targets its banks ahead of planned talks next month between US President Donald Trump and Chinese President Xi Jinping.
The Chinese Foreign Ministry said sanctions and pressure “do not help” and that Beijing would act to protect its interests. When asked about Chinese banks, Bessent said bluntly: “No one is above the reach of US sanctions.”
Regional tensions rose on Monday when a projectile struck a Saudi-flagged tanker in the Red Sea, setting a fire on deck. Houthi-linked forces claimed responsibility, accusing the vessel of carrying Saudi oil diverted from the Strait of Hormuz. Saudi Arabia’s national shipping company confirmed the attack.
For Malaysian businesses, the move raises the risk of higher oil prices and supply chain disruptions if shipping lanes in the Strait of Hormuz are further destabilised.
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