Trump's war with Iran, which has pushed energy prices higher worldwide, is about to hit its six-month mark. While heavy fighting has subsided, diplomatic efforts to end the war have stalled and oil and raw material shipping through the Strait of Hormuz remains blocked, keeping energy prices elevated.
Trump's approval rating has fallen to a low point, with just 33% of Americans in the latest Reuters/Ipsos poll approving of his performance. He says the economic costs are necessary to ensure Iran does not have a nuclear weapon.
Decades of sanctions
The U.S. has maintained sanctions against Iran for decades, most of which have been aimed at curtailing the country's oil revenues, aviation sector, cryptocurrency, procurement of weapons components and other military hardware, and cutting off funding for business enterprises controlled by the Islamic Revolutionary Guard Corps, a dominant force in the Iranian economy.
The sanctions bar designated entities from the dollar-based financial system, but Iran has been successful in quickly standing up new front companies, other entities and vessel registrations to evade the sanctions.
The Treasury Department has also recently sanctioned independent Chinese "teapot" refineries for buying Iranian oil, and expanded sanctions on the "shadow fleet" of tankers transporting Iranian oil.
Tehran has managed to weather decades of U.S. sanctions but the naval blockade that the U.S. imposed has inflicted severe economic damage on the country.
That already curbed Chinese offers to purchase Iranian crude, Reuters reported on Friday, which may lessen the impact of secondary sanctions on China.
Earlier this month, Defense Secretary Pete Hegseth said the United States could maintain the naval blockade indefinitely, which could keep oil prices elevated, potentially stirring U.S. voter anger ahead of congressional elections in November.
Treasury Department data shows the U.S. has imposed Iran-related sanctions on more than 1,000 people, vessels and aircraft since Trump began his second term in 2025.
Recent measures have targeted Iran's shadow oil fleet, shipping insurers, weapons-procurement network, and digital exchanges, freezing an estimated $500 billion in Iran-linked cryptocurrency.
Bessent singled out Iran's Bank Melli, which continues to operate branches in Europe, the Middle East and Asia.
"Every branch of Bank Melli must be shuttered and dark," he said.
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