'Whack-a-mole'
The United States could continue targeting Iranian individuals and entities, as well as others in China and the Gulf, that are helping Tehran evade sanctions to collect revenues for its war effort.
The Treasury Department recently issued sanctions against firms that are springing up to facilitate Iran's trading of oil revenue for imports. But such measures amount to a "whack-a-mole" approach that has not altered Iran's behavior, said Brett Erickson, managing principal of Obsidian Risk Advisors, noting that Tehran simply creates new entities to replace them.
Miad Maleki, a sanctions expert with the Foundation for Defense of Democracies, said Bessent was likely signaling a sharpened enforcement push against oil shippers, purchasers and currency exchangers who help Iran pay for its imports.
Further aviation sanctions were also possible, aimed at degrading Iran's ability to move trade now that the U.S. has blockaded shipping via the Strait of Hormuz, he added.
Land blockade
Some U.S. and Israeli officials have floated the prospect of a land blockade, which would require assistance from Iran's neighbors: Iraq, Turkey, Pakistan, Afghanistan, Turkmenistan, Azerbaijan and Armenia.
The Trump administration has varying degrees of closeness with all those countries except Afghanistan, but that border is mountainous and extremely difficult to patrol anyway.
Trump may have leverage over Pakistan, which recently sought a $10 billion currency swap line from Treasury, and Turkey, which is seeking to rejoin the U.S. F-35 warplane program.
A land blockade could increase pressure on the Iranian people by halting their imports of food, energy and textiles, but experts say such a move would be difficult to execute and might not result in protests or internal pressure.
Secondary tariffs
Trump has repeatedly threatened tariffs on goods from countries that do business with Iran, although the Supreme Court struck down the legal basis for such taxes.
The Senate passed a sweeping Russia sanctions bill last week that included new Iran sanctions and would give Trump new tariff powers that he could potentially use against countries that aid Iran's commerce and weapons procurement.
That legislation must still pass the U.S. House of Representatives, which could prove challenging given widespread concerns among Democrats and some Republicans about the tariff measures.
SPY•
