On August 24, 2026, the U.S. Treasury announced it was preparing a set of economic measures against Iran and its trade partners. Treasury Secretary Scott Bessent will unveil the sanctions at a press conference at 18:00 GMT.
Bessent described the sanctions on X as the "single greatest financial offensive ever marshaled against an adversary." He said that U.S. President Donald Trump had "dismantled Iran's military capabilities, destroyed nearly 100% of its military factories, and buried its nuclear program."
Hours before the official announcement, Trump posted on social media that Iran was "completely collapsing." He made this post the day before the conference.
Bessent also referred to an "economic D-Day" for Tehran, threatening harsher sanctions not only against Iran but also against countries that continue to do business with it. His goal is "to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone."
Last week, the United Arab Emirates, one of Iran's largest trading partners and its biggest source of imports, announced it would suspend all trade with Iran. This action occurred at the same time that the U.S. warned that the sanctions might also affect China, Russia, and India.
Ahead of the conference, China’s Ministry of Foreign Affairs said it was closely monitoring the situation and would take whatever actions were necessary to protect its rights. The ministry also added that sanctions and pressure tactics do not help resolve problems.
Over the weekend, Iran's top security chief, Mohsen Rezaei, warned that any country's support for the U.S. measures would be seen as an "act of war." He said Iran would "retaliate in a seismic manner" by targeting oil shipping routes from the Persian Gulf.
If the economic war continues, he added, "not a single drop of oil will be exported, neither through the Strait of Hormuz nor from anywhere in the Persian Gulf."
These sanctions come against the backdrop of a war that began on February 28, when Israel and the U.S. carried out strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei. Iran responded with strikes on energy infrastructure and U.S. bases in the Gulf region.
While the two sides have stopped bombing, talks to end the conflict have stalled. Control over the Strait of Hormuz remains a key sticking point; Iran has effectively closed the waterway, crucial for global oil and gas shipments, while the U.S. maintains a blockade of Iranian ports.
Under a memorandum of understanding signed in June, the two sides had 60 days to negotiate an end to the war and reach an agreement on Iran's nuclear program. That period expired last week with no signs of a deal.
Meanwhile, Pakistan's army chief was expected to travel to Iran on Monday as part of efforts to revive diplomatic talks in the conflict. And on Tuesday, Oman's foreign minister is set to meet his Iranian counterpart to continue talks on the Strait of Hormuz.
