US Escalates Iran Oil Sanctions, Warns Global Banks in "Economic Fury"

US Treasury Secretary Scott Bessent said Washington was escalating its financial offensive against Iran under what he described as "Operation Economic Fury."

"For over a year, we have had maximum pressure on the Iranians, both on blocking payments into the Iranian state and going after the accounts of the IRGC," Bessent said.

He said the US was now pushing partner countries to take more aggressive steps, including freezing funds linked to Iran's leadership. "We have pushed out to them the request that we want to freeze more funds of the leadership of the IRGC and any members of the Iranian leadership," he said.

Bessent warned that the administration was prepared to impose secondary sanctions on countries and institutions continuing to engage with Iranian oil revenues.

"We have told countries that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions," he said, calling it "a very stern measure."

He framed the move as part of a broader escalation strategy. "This is going to be the financial equivalent of what we saw in the kinetic activities," Bessent said, adding when asked if it marked a new phase: "Exactly."

The Treasury chief said enforcement was already underway, noting that warnings had been issued to financial institutions. "Two Chinese banks received letters from the US Treasury," he said, adding that action would follow if Iranian funds were traced through their systems.

Bessent also said the US would tighten energy-related restrictions. "We will not be renewing the general license on Iranian oil," he said, signalling a stricter approach to limiting Tehran's export revenues.

He linked the growing pressure to recent regional developments, saying Iranian actions had shifted the stance of neighbouring countries. "One of the... mistakes that the Iranians made was bombing their GCC neighbours," he said, adding that those countries were now "much more transparent" in tracking financial flows.

The administration said the economic measures were part of a coordinated effort alongside ongoing diplomatic engagement.

White House Press Secretary Karoline Leavitt stated that the strategy was aimed at achieving long-term security goals. "This is a short-term disruption for the long-term strategic goal of the United States," she said.

Officials indicated that the pressure campaign would continue alongside negotiations, with sanctions intended to limit Iran's financial capacity while talks proceed.

- IANS