US Treasury Secretary Bessent said on Aug. 25 that the United States is launching an "economic isolation action" against Iran, describing the move as an effort to "completely cut off all other options for the Iranian regime."
At the press conference, Bessent said the Treasury Department will impose sanctions on nearly 60 Iran-linked entities, individuals, and vessels connected to nuclear, missile, cyber, and oil networks. He also said five sectors face potential secondary sanctions: digital assets, technology, gold, aviation, and shipping.
Digital assets included in potential secondary sanctions scope
Bessent said any entity that facilitates money laundering for Iran would be removed from the US dollar system. He said that "any economic dealings with Iran will expose the responsible parties to the full force of American sanctions."
He added that countries must shut down activities identified by the Treasury within a limited period, including closing Iranian bank branches operating overseas. If that does not happen, the US will act unilaterally through its financial powers.
Bessent also warned against underestimating the impact of secondary sanctions and said a major financial institution will be sanctioned over Iran before the end of the week.
Press conference also covered Syria, Treasury operations, and Canada trade tensions
The US also said it has revoked the terrorist designation for Syria's HTS and removed Syria's designation as a state sponsor of terrorism.
During the same press conference, Bessent clarified the Treasury buyback plan, saying the US has not purchased any bonds and that the next operation is scheduled for Sept. 9. He added that regular Treasury auction plans will continue. The remark was meant to address market concerns over the pace of Treasury intervention.
At the same time, Canadian Prime Minister Carney responded to Trump's threat of a 50% auto tariff by saying retaliatory tariffs would be "highly targeted" and accusing Trump of wanting to "destroy our critical industries on his negotiating terms." Bessent said Trump wants Canada to come to the table and negotiate in good faith.
The press conference delivered a dense set of policy signals: a broad escalation in financial pressure on Iran, parallel trade pressure on allies, and a cautious approach to operations in the US Treasury market.