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Scott Bessent Unveils New Sanctions Package to Target Iran's Economic Lifelines

Treasury Secretary Scott Bessent announced a sweeping sanctions package aimed at crippling Iran's economy by targeting a complex network of entities that allow the Islamic Republic to evade Washington's wide-ranging restrictions. The administration announced these measures, which include penalties for Iranian trade partners in sectors such as digital assets, technology, and shipping, while warning that stricter penalties could follow for countries that do not cut ties with Tehran. In response, Iran has threatened reciprocal strikes on regional oil producers and European countries, warning that any country supporting US military aggression against it will be considered an act of war. China, Iran's top trade partner, has pushed back against what it called "illegal unilateral sanctions," noting that while Washington will be careful with its moves affecting China-Iran trade ties ahead of a September summit with President Trump, Beijing remains prepared to defend its economic interests. The sanctions also target nearly 60 Iran-linked entities, including several Hong Kong-based firms like Sweet Ocean, which the US alleged acted as an intermediary for sensitive equipment. The administration announced that these measures, often referred to as "economic D-Day," are designed to be comprehensive. However, experts suggest that while the administration announced these measures, the more comprehensive the blockade becomes, the more countries it needs to cooperate, potentially giving Tehran more leverage to pressure other actors in the response.

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