The administration of United States President Donald Trump has announced new economic sanctions on Tehran, describing the measures as an “economic D-Day” as the US war on Iran approaches the six-month mark.
US Treasury Secretary Scott Bessent announced the sanctions on Monday, alongside a naval blockade of Iranian ports.
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Bessent said the sanctions target key sources of Iran’s revenue, including its oil and gas industry, and called on countries around the world to cut economic ties with Tehran.
What are the sanctions?
The Treasury Department said the sanctions will target Iran’s aviation, digital assets, gold, technology and shipping sectors, as well as impose sanctions on 60 specific individuals and vessels.
“The main point is that Iran seems to have much less room than it did in previous years to simply work around sanctions,” Peiman Salehi, a Tehran-based geopolitical analyst, told Al Jazeera.
Bessent also said on Monday that the new sanctions expose Tehran’s trade partners to secondary penalties. According to a Treasury Department release on Monday, the targets include ships based in or associated with countries including Singapore, China, and Hong Kong.
“Today’s sanctions are mostly incremental, but are part of trying to intimidate remaining trading partners into cutting ties [with Iran],” said Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security think tank.
“There’s a lot of signalling and bluster aimed at getting other countries to crack down on entities involved in grey-zone trade, but new measures are mostly incremental for now,” she said. Grey-zone trade refers to both illegal, underground trade and trade that is unsanctioned but difficult.
The Treasury Department said Iran has used cryptocurrency to circumvent its longtime sanctions and facilitate transactions involving the Islamic Revolutionary Guard Corps (IRGC) and members of the Iranian regime. The department also said Iran has used gold to help prop up the value of its currency amid economic instability.
The new shipping sanctions target Iran’s state-linked shipping fleet, which the Treasury Department alleges is being used to transport oil as well as “sensitive weapons components”.
The technology sanctions are intended to restrict Iran’s acquisition of materials that could be used in its weapons programmes. The aviation sanctions target Iranian airlines that the Treasury Department alleges are being used to transport weapons and military personnel, as well as financial resources to Iran’s proxies.
Washington also indefinitely suspended several broad exceptions to its ongoing sanctions on Iran, including those covering academic exchanges, personal money transfers and certain sporting activities. Organisations currently engaged in those activities have until September 8 to wind down their operations.
Ziemba says these measures “will have more effect on Iranians, not just the regime”.
What sanctions were already in place?
Washington’s sanctions on Iran have been in place since 1979, after students took hostages at the US Embassy in Tehran, and increased over the next 45 years. Sanctions were briefly paused, however, after the administration of President Barack Obama and world powers signed a nuclear deal with Tehran in 2015. But the Trump administration withdrew from the deal during its first term, in 2018, bringing back old penalties while adding new ones.
Washington imposed new sanctions during Trump’s second term, many of them before the US and Israel first struck the country on February 28.
In February 2025, the Treasury Department sanctioned 30 individuals and vessels involved in the “brokering [of] the sale and transportation of Iranian petroleum-related products”, according to a department release. The targets were based in several countries, including India and China.
In December 2025, Washington sanctioned 29 vessels it accused of being part of a so-called shadow fleet used to transport Iranian petroleum. It also sanctioned Egyptian businessman Hatem Elsaid Farid Ibrahim Sakr over his businesses’ alleged ties to seven of those 29 vessels. The measures continued the 1979 sanctions campaign against Iran’s oil industry.
The Treasury Department stepped up the sanctions again in April 2026, targeting another two dozen individuals, companies and vessels operating within the network of Iranian oil shipping magnate Mohammad Hossein Shamkhani, the son of now-deceased senior Iranian security official Ali Shamkhani.
Later that same month, the Treasury also targeted what it described as “regime-linked cryptocurrency” and said it had seized nearly half a billion dollars from so-called “shadow banking networks”.
How have sanctions affected US consumers?
Pressure on the Iranian oil market, both through existing sanctions as well as the current war, has tightened the rest of the globe’s oil supply and affected countries that buy Iranian oil.
China, for example, is the primary destination for Iranian oil, buying roughly 90 percent of Iran’s crude oil exports. Beijing bought 1.4 million barrels per day in 2025.
At the same time, Asian markets, China included, also heavily rely on oil travelling through the strategically vital Strait of Hormuz, where roughly one-fifth of the globe’s oil transited before Iran choked off the route.
This has put pressure on the global oil supply, meaning the benchmark for crude oil has ticked up, translating to higher prices on fuel and food.
For US consumers, that has been most apparent at the petrol pump. The average price for a gallon of petrol (3.78 litres) is $4.09, up from $2.98 on February 28 when the US and Israel first struck Iran, according to the American Automobile Association (AAA), which tracks daily petrol prices.
Experts warn that if Iran retaliation accelerates, it could hit Americans hard.
“If sanctions provoke Iranian retaliation against Gulf shipping, materially reduce oil exports, or cause insurers and shipping companies to avoid the region, then Americans could feel it very quickly through gasoline, diesel, airfares, freight costs and ultimately inflation,” John Deal, managing director of capital markets at Post Oak Group investment bank, told Al Jazeera.
The economy and Iran are emerging as key issues heading into the US midterm elections, with voters expressing dissatisfaction on both fronts. That could put pressure on Republicans in competitive races, including in traditionally red states such as Texas.
A late-July Reuters/Ipsos poll suggested that only about a third of Americans supported the war, while just 28 percent of respondents in a CNN poll approved of Trump’s handling of Iran.
On the economy, an AP/NORC poll suggested that 32 percent of Americans approved of Trump’s performance. A recent Reuters/Ipsos poll, meanwhile, suggested that Democrats were narrowly ahead of Republicans on which party voters trust more to handle the economy—the first Democratic advantage in roughly a decade.
How are the sanctions affecting markets?
The latest sanctions announcement is weighing on Wall Street as well as the oil and gold markets.
On the heels of the announcement, the price of gold, largely considered a safe investment during times of economic uncertainty, jumped by 0.8 percent to $4,639.49 per ounce (28 grams) in midday trading, ticking up to its highest level since mid-May.
As for oil, prices pulled back on Monday after two weeks of gains. The price of the global benchmark Brent crude tumbled by more than 2 percent on Monday to $85.22 a barrel.
On Wall Street, the major indices are mixed amid the latest sanctions news as well as Trump’s announcement of new tariffs on Canada. The Nasdaq is down 0.5 percent, and the S&P 500 is down 0.2 percent. The Dow Jones Industrial Average, however, is trending in positive territory, 0.2 percent higher than the market open on Monday.
The oil sector is taking a hit. Chevron is down 0.8 percent, ExxonMobil tumbled 0.9 percent, BP fell more than 2 percent, and Shell is down 0.2 percent.
