US Treasury Secretary Scott Bessent.
US Treasury Secretary Scott Bessent warned on Monday, August 24, that countries and businesses maintaining economic ties with Iran could face US sanctions, telling world leaders they must choose between economic relations with Tehran and access to the US financial system.
“It is now time for world leaders to make the decision between America and Iran,” Bessent said, warning that those continuing to engage with what he called a “terrorist regime” could face the reach of US financial power.
Washington will target five sectors — digital assets, technology, gold, aviation and shipping — under the expanded sanctions campaign. Bessent said Iran now faces a choice between deeper economic isolation and a return to normal economic relations, depending on whether Tehran ends activities targeted by the US.
Asked why the US was not immediately sanctioning foreign entities, he said the administration wanted to give them time to change their behaviour.
“We are giving everyone the opportunity to remedy bad behaviour. Why would I want to blow up the global financial system?” Bessent said.
He said Washington considered the period a chance for businesses and governments to adjust to its demands, but warned that enforcement could move quickly.
“We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious,” he said. “We believe that a warning shot and a level-set of expectations is appropriate.”
The US also sanctioned nearly 60 Iran-linked individuals, entities and vessels as it broadened the threat of secondary sanctions against foreign parties maintaining business ties with Tehran.
The measures follow President Donald Trump’s pledge last week to unleash an “economic D-Day” against Iran.
Bessent said Trump had been contacting world leaders to urge them to end economic dealings with Tehran and claimed the administration had already seen results.
The UAE announced last week that it was suspending trade, commercial exchanges and financial transactions with Iran until further notice following a reported missile attack on the Gulf state.
Bessent said the UAE’s decision was “not a coincidence”.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf dismissed the US pressure, saying Washington was not in a position to further restrict Iran’s economic relations with other countries.
He said Iran’s trading partners had indicated they were not taking the US warnings into account.
The comments came as Iran’s rial fell to a record low of about 2.02 million against the US dollar when trading opened. The central bank’s official rate stood at around 1.5 million rial per dollar, while the market rate is more widely used.
The currency had already been weakening before the US and Israel attacked Iran on February 28, amid double-digit inflation and negative growth. Nearly six months of war have added to the economic strain.
Food prices have risen sharply. Rice costs about 60 per cent more than before the war, while beef prices have increased by more than 150 per cent. The International Monetary Fund forecasts that Iran’s gross domestic product will contract by more than 5 per cent.
Iran continues to hold leverage through the Strait of Hormuz, where attacks and threats against ships have sharply reduced maritime traffic.
About a fifth of the world’s traded oil passed through the waterway before the conflict. Iran has refused to fully reopen it unless it is allowed to charge ships, making the strait a central issue in the war.
Iran and Oman are reportedly close to an agreement on joint management of the waterway. Oman’s foreign minister is due to visit Iran on Tuesday.
Pakistan sent a high-level delegation to Iran on Monday as part of efforts to encourage Washington and Tehran to resume negotiations.
Field Marshal Asim Munir, Pakistan’s army chief and chief of defence forces, met Iranian President Masoud Pezeshkian during his visit to Tehran, as well as other senior Iranian officials. The visit was part of Islamabad’s efforts to promote dialogue and de-escalation.
Munir’s visit followed a conversation with Trump before his trip to Tehran, according to Pakistani sources cited by Reuters.
Pakistan previously helped broker a 60-day ceasefire in June and has continued efforts to bring the US and Iran back to negotiations.
Inputs from Associated Press.
This post was last modified on August 25, 2026 12:42 pm