'Economic asphyxiation': US unveils sweeping new sanctions campaign in attempt to isolate Iran

US Treasury Secretary Scott Bessent on Tuesday laid out plans for the "economic asphyxiation" of Iran, expanding the US' secondary sanctions threats and warning of dire consequences for countries that do not join the campaign.

The announcement comes almost six months into a war on Iran that has ground to a stalemate, with stalled peace talks and Iran blocking most traffic through the crucial Strait of Hormuz.

Bessent earlier said the United States was declaring an "economic D-Day" on Iran, but his announcement named no specific countries beyond Iran and gave no timelines.

"Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent told journalists.

"We are going to hold everyone accountable, and this is economic asphyxiation of this regime."

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He added that countries not joining US sanctions would "share in the isolation" of Iran, and noted that President Donald Trump was making phone calls to world leaders with requests to stop interactions with Tehran.

The Treasury Department said expanded secondary sanctions would target Iran's digital assets, technology, gold, aviation and shipping sectors.

It also issued new sanctions against 60 individuals, companies and vessels that allegedly aid Iran in oil revenue generation, weapons procurement and cyber operations.

The sanctions hit entities around the world, including in the United Arab Emirates, Hong Kong, China, Singapore and in Europe.

Bessent vowed that any entity "that facilitates money laundering on behalf of Iran will be removed from the US dollar system."

Iran had been dismissive of the threat of additional sanctions, and on Tuesday its economy minister predicted "another defeat" for the US on the economic front.

"We've been waiting for these plans for a long time, and the government is and was ready and has a two-year plan to manage these events," said Ali Madanizadeh.

In a post before the announcement, Deputy Foreign Minister Kazem Gharibabadi said the latest US threats were an admission of military defeat.