US Treasury to announce new Iran sanctions as rial hits record low
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US Treasury Secretary Scott Bessent is expected to announce new economic measures against Iran on Monday, aimed at collapsing its economy. The Iranian rial fell to a record low of 2.03 million per dollar in Tehran's open market as Washington prepares what it calls an 'economic D-Day'. China and Turkey face secondary sanctions risk over their trade ties with Iran.
Key Facts
- US Treasury Secretary Scott Bessent is expected to announce new sanctions on Monday at 21:00 Turkish time.
- The Iranian rial hit a record low of 2.03 million per US dollar in Tehran's open market on Monday.
- China purchased an average of 1.38 million barrels per day of Iranian oil in 2025, over 80% of Iran's total exports.
- Turkey's annual trade volume with Iran is approximately $5-6 billion, with about $3 billion in Turkish exports.
- US Central Command redirected 70 commercial vessels, disabled three, and boarded two as part of a naval blockade on Iran.
Sanctions Announcement
US Treasury Secretary Scott Bessent is expected to announce new economic measures against Iran on Monday, designed to 'squash' the Iranian economy and 'collapse' the government. In a Financial Times op-ed, Bessent wrote that 'at dawn the day of economic reckoning begins; this will be the largest financial war the US has waged against a rival'. Bessent's press conference is scheduled for 21:00 Turkish time on Monday. US President Donald Trump has warned of an 'economic D-Day', preparing the most potent financial measures against any country, aimed at Iran. Banks, oil buyers, refiners, shipping companies, registries, ports, airports, exchange houses, front companies, and potentially governments facilitating Iranian trade could be exposed to secondary sanctions.
Iranian Economy Under Pressure
The Iranian rial fell to a new all-time low on Monday, hitting 2.03 million rials per US dollar in Tehran's open market. Iran has responded to economic penalties with a complex sanctions-evasion system, including a shadow tanker fleet, ship-to-ship oil transfers, shell companies, and alternative payment mechanisms. A US naval blockade has physically stopped most Iran-linked ships from transiting through the country's southern ports. US Central Command said on Sunday that its forces redirected 70 commercial vessels, disabled three, and boarded two as part of the blockade, which could last indefinitely. Iran's extensive land borders, railway lines, and access to the Caspian Sea in the north give Tehran more leeway to circumvent the blockade.
Trade Partners at Risk
China is Iran's largest oil customer, purchasing over 80% of Iran's oil exports, averaging 1.38 million barrels per day in 2025 according to Kpler data. Some Iranian oil reaches China labeled as Malaysian or Indonesian origin to avoid sanctions, with payments made in yuan through hard-to-trace intermediaries. The US sanctioned an independent Chinese refinery in April for purchasing billions of dollars of Iranian oil and warned Chinese banks about secondary sanctions. Turkey's annual trade volume with Iran is approximately $5-6 billion, with about $3 billion in Turkish exports to Iran. Energy forms the most critical part of the Turkey-Iran relationship.
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US Treasury to announce new Iran sanctions as rial hits record low
