The tensions between Iran and the United States continue, with officials from both countries exchanging threats. So far, U.S. military operations against Iran have failed to force the regime to surrender. As a result, the Trump administration is planning to raise economic pressure on Tehran to crippling levels.
Last week, U.S. President Donald Trump vowed to inflict severe economic pain on Iran. His remarks came a day after Treasury Secretary Scott Bessent said Washington would impose measures on Tehran "never seen before."
The U.S., the United Nations and the European Union have imposed various sanctions on Iran since the late 1970s over its nuclear program, human rights violations and support for various groups. These sanctions have frozen Iranian assets abroad, and Tehran currently appears unable to access those assets.
Following the war in Iran that began in February, Washington imposed additional sanctions targeting Iran's maritime, energy and financial sectors, and also launched a naval blockade.
Data from the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) show that the agency has sanctioned more than 1,000 individuals, vessels and aircraft since Trump began his second term.
The latest sanctions have targeted Iran's covert oil fleet, shipping insurers, organizations and individuals accused of facilitating Iran's weapons procurement, as well as entities operating on digital exchanges. The measures raise a key question: Is the U.S. seeking to achieve through sanctions what it has failed to achieve through war?
U.S. sanctions are not affecting Iran alone. Numerous countries and organizations are also being impacted.
For example, independent refineries in China account for around one-quarter of the country's refining capacity. They operate with narrow, and sometimes negative, profit margins.
According to 2025 data from analytics firm Kpler, China purchases more than 80% of the oil shipped by Iran. Independent Chinese refineries handle a significant share of this trade, exposing them to so-called secondary sanctions, which target entities that assist organizations already subject to primary sanctions.
Previous U.S. sanctions prevented larger independent refineries from purchasing Iranian oil. However, according to sanctions experts, smaller independent refineries have gained a degree of immunity because they have had limited exposure to U.S. sanctions.
OFAC has now begun imposing secondary sanctions on smaller China- and Hong Kong-based entities that it accuses of processing billions of dollars' worth of Iranian oil and helping finance weapons procurement.
The U.S. Treasury Department has warned that two major Chinese banks could face secondary sanctions if Iranian funds are found to have passed through their systems, although Washington has so far avoided directly targeting them.
Sanctions against these two banks or other entities, which U.S. officials have not publicly identified, could have a deterrent effect on larger financial institutions. However, such measures could also trigger retaliatory action from Beijing.
The Trump administration is seeking to ease tensions between Washington and Beijing ahead of an expected meeting between the U.S. president and Chinese President Xi Jinping later this year. Washington and its Western allies are concerned that China could restrict exports of critical minerals needed for advanced technology manufacturing, at a time when the United States and its allies are seeking to develop alternative supply chains.
The U.S. could continue targeting Iranian individuals and organizations, as well as entities in China and the Gulf, that help Tehran evade sanctions and generate revenue for its war effort.
The U.S. Treasury Department recently imposed sanctions on emerging companies accused of facilitating Iran's efforts to exchange oil revenues for imports. However, experts say such measures have failed to change Iran's behavior, arguing that Tehran simply creates new entities to replace those targeted by sanctions.
Following the blockade of maritime traffic through the Strait of Hormuz, the U.S. also plans to introduce additional aviation sanctions aimed at weakening Iran's ability to conduct trade.
Another option is a land blockade of Iran. A potential land blockade could disrupt Iran's imports of food, energy and textiles. However, experts say such a move would be difficult to implement and might not generate the desired level of domestic pressure.
Trump has previously threatened to impose tariffs on countries trading with Iran. However, that threat was weakened after the U.S. Supreme Court ruled that the president did not have the constitutional authority to impose unilateral tariffs based on national emergency powers. The decision undermined the existing legal basis for Trump's threats of secondary tariffs against countries trading with Iran.
The court emphasized that the authority to impose taxes and set tariffs belongs directly to Congress. It also ruled that emergency powers cannot provide a legal basis for sweeping and permanent global tariffs.
The tensions and ongoing conflict between the two countries have now entered their seventh month. The confrontation between the U.S. and Iran continues to affect regional and global dynamics. While both sides are taking military steps, diplomatic contacts are also continuing. How the conflict will ultimately end remains unclear.
