The United States on Monday warned that China and all other countries now face an increased risk of secondary sanctions if they do business with Iran as Washington launches a fresh campaign aimed at severing crucial economic lifelines for Tehran.
Treasury Secretary Scott Bessent said the campaign, dubbed Operation Economic Outcast, will focus on five sectors - digital assets, technology, gold, aviation and shipping.
"Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to the Iranian regime should expect to share in the isolation of a withering regime," Bessent said at a press conference.
"No one is above the reach of US sanctions," he said, stressing that any entity or country, including China, a key trading partner for Iran, may be targeted in the new operation.
The US threat came as President Donald Trump has struggled to reach an agreement with Iran towards ending their nearly six-month-old war and just a month before he plans to host Chinese President Xi Jinping at the White House.
"Every country has a defined timeline to shut down activities we have identified," Bessent said. "If they do not take action, we will do so unilaterally through Treasury authorities."
"It is now a time for world leaders to make a decision between prosperity and isolation, peace and terror, America and Iran," he said.
But the Trump administration did not disclose the specifics of its latest bid to apply economic pressure, with Bessent saying, "We're not going to name names."
It remains unclear how the newly announced plan to block Iran's sources of revenue will differ from previous efforts.
While providing some examples, Bessent said that any entity facilitating money laundering for Iran will be removed from the US dollar system.
In response to the US threat, Iran's economy minister Ali Madanizadeh said the country is "fully prepared" for the sanctions.
Iran's official media quoted the minister as saying the US will not be able to cut off Tehran's financial lifelines.
In addition to announcing potential secondary sanctions, Bessent said the US has decided to sanction about 60 entities, individuals and vessels around the world that "enable the Iranian regime to procure illicit nuclear and missile technology, conduct cyber operations and generate oil revenue."
