US unveils 'economic D-Day' of sanctions to isolate Iran

Asked about Chinese banks on Monday, Bessent said, "We want to make clear here today that no one is above the reach of U.S. sanctions."

The Chinese foreign ministry said sanctions and pressure tactics do not help and Beijing would do what was necessary to protect China's interests.

Bessent said the U.S. Treasury Department has mapped the networks, facilitators and financial channels that Iran uses to smuggle oil and evade sanctions. He said Washington would be working with U.S. partners to target any source of Iran's "illicit revenue."

The U.S. on Monday announced an expansion of secondary sanctions it hopes will "sever every economic lifeline" that sustains Iran, U.S. Treasury Secretary Scott Bessent said at a press conference.

Bessent unveiled what he described as an "economic D-Day" that aims to give a final warning to countries to cut their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system.

"We are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent said.

The move is part of U.S. efforts to put pressure on Iran to end the attacks on ships in the Gulf and, more recently via its allies, in the Red Sea, that Tehran launched after the U.S. and Israel began air strikes against it in February. Iran has said it will have the opposite effect.

Iran has spent decades under layers of U.S. and international sanctions that have battered its economy but have not deterred its leadership.