Iran Prepares for Severe New US Economic Sanctions Amid Escalating Conflict

Iranians are preparing for further economic pain as the United States gets ready to announce a new round of punishing sanctions on Iran. US Treasury Secretary Scott Bessent is expected to announce new economic measures against the country, designed to 'squash' the Iranian economy and 'collapse' the government. US President Donald Trump has also warned of an 'economic D-Day', with the US preparing the most potent financial measures against any country, aimed at Iran.

But analysts say the penalties are unlikely to change the behaviour of Iran, already one of the most sanctioned countries in the world. Banks, oil buyers and refiners, shipping companies, registries, ports, airports, exchange houses, front companies and potentially governments facilitating Iranian trade could be exposed to secondary sanctions by Washington.

In a social media post, President Donald Trump claimed Iran was 'completely collapsing'. The country has been subject to a 'maximum pressure' campaign by the US since the first term in office in 2018, following the unilateral withdrawal from a nuclear deal signed three years earlier between Iran and world powers.

Iran has responded to economic penalties with a complex sanctions-evasion system, including a shadow tanker fleet, ship-to-ship transfers of oil, shell companies, and alternative payment mechanisms. However, a naval blockade enforced by the US military has physically stopped most Iran-linked ships from transiting through southern ports. The US Central Command stated that its forces have redirected commercial vessels, disabled some, and boarded others as part of the blockade.

Despite this, Iran's extensive land borders, railway lines, and access to the Caspian Sea provide leeway to circumvent restrictions. Umud Shokri, energy strategist and senior visiting fellow at George Mason University, noted that Iran has become adept at finding ways around US sanctions to survive, even though economic damage continues to mount, with the Iranian rial hitting a new all-time low against the US dollar.

Senior military commanders in Iran remain defiant. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, warned that countries backing the new US measures will be considered enemies, threatening that not a single drop of oil will be exported from the Persian Gulf if the economic war continues. Army chief Amir Hatami stated that forces are prepared to fight if necessary, while President Masoud Pezeshkian suggested ending the war from a position of strength. Meanwhile, China remains Tehran's most important economic lifeline, though major Chinese banks still navigate carefully to avoid secondary US financial system penalties.