US Tightens Iranian Oil Sanctions
US Shifts From Military Strikes to Broad Economic Sanctions on Iran
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Trending on XUS 'Economic D-Day' Sanctions on Iran
Key Points
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Treasury's sanctions push targets nearly 60 individuals, entities and vessels tied to Iran (focused on oil networks, military procurement and cyber operations) and broadens secondary sanctions to cover digital assets, gold, technology, aviation and shipping.
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China is identified as the biggest potential test of the new sanctions regime because it buys more than 80% of Iran's shipped oil, with the administration reportedly refraining from sanctioning major Chinese financial institutions thus far.
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Iran had committed under a defunct US–Iran memorandum of understanding to remove dozens of mines from the Strait; the US has used underwater drones to map the area and private contractors to remove or detonate more than 100 objects, enabling freer tanker passage.
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Radar-like assessment of shipping flow shows a sharp decline in Kharg Island tanker activity and a shift of more traffic through the Strait's southern lane, a development U.S. officials say significantly reduces Tehran's leverage and signals U.S. control of the strait.
The United States is shifting its Iran strategy away from military strikes toward economic pressure and naval control, Washington Examiner reported. Secretary of State Marco Rubio told foreign counterparts that strikes will be paused "for the time being" while the administration pursues sanctions targeting Iran's oil networks, finance, and military procurement. The Treasury Department is moving to impose sanctions on nearly 60 Iranian entities, individuals, and vessels while tightening secondary sanctions on countries and companies that do business with Tehran.
The U.S. has already cleared mines from the Strait of Hormuz and shifted tanker traffic to the southern lane, reducing Iran's leverage over global energy markets. Investing.com noted that the U.S. is removing a major geopolitical risk that had been inflating crude oil prices. Officials say this approach will hold through the midterm elections, after which a broader military campaign could be reconsidered if Iran initiates hostilities.
Treasury Expands Sanctions on Iranian Oil and Finance
The U.S. Treasury Department is broadening its sanctions to squeeze Iran's oil revenue and access to global markets. Middle East Eye reported that the new sanctions target nearly 60 individuals, entities, and vessels connected to Iran's oil networks, military procurement, and cyber operations. The expanded secondary sanctions now cover digital assets, gold, technology, aviation, and shipping—cutting off channels Iran uses to move money and goods internationally.
China Tests the Limits of Secondary Sanctions
China emerges as the biggest challenge for the new sanctions regime. The country buys more than 80 percent of Iran's shipped oil, giving it enormous leverage over Tehran's economy. Washington Examiner reported that the administration has so far avoided sanctioning major Chinese financial institutions, signaling a careful approach to avoid direct confrontation with Beijing while still pressuring Iran's oil trade.
U.S. Clears Strait of Hormuz to Reduce Iranian Leverage
The United States has removed mines from the Strait of Hormuz and mapped the seabed using underwater drones and private contractors. Private teams detonated or removed more than 100 objects, clearing the waterway for easier tanker passage. Shipping data shows a sharp decline in activity at Kharg Island, Iran's main oil terminal, with traffic shifting to the southern lane of the Strait—a sign that U.S. officials now control the critical chokepoint.
Military Option Remains If Iran Strikes First
While the current policy emphasizes economic pressure over military action, U.S. officials have not ruled out strikes if Iran initiates hostilities. Israel National News reported that Rubio told allies the U.S. does not plan new attacks "for the time being." The strategy is expected to hold through midterm elections, after which a broader military campaign could be reconsidered depending on Iranian actions and the political environment.
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