Iran America Tension: US President Donald Trump has announced the biggest attack on Iran’s economy so far. He has warned that Tehran will now have to face more severe economic pressure than ever before.
Tension continues between America and Iran. Meanwhile, President Donald Trump has announced a very severe economic blow to Iran’s economy. On Friday, the President said that Tehran will face more painful economic pressure than ever before. A day before this statement, i.e. on Thursday, US Finance Secretary Scott Besant had warned that Washington will take such drastic steps against Iran next week, which the world has never seen before. In such a situation, the question is arising that what is America going to do against Iran?
In fact, this threat has come at a time when America, United Nations and European Union have imposed various types of sanctions on Iran for the last five decades. Trade sanctions, asset freezes, and financial blockades have been imposed on Iran since the late 1970s because of its nuclear program, serious human rights violations, and support for regional extremist organizations. Washington has tightened these sanctions since the Iran war began in February. New restrictions have been imposed on sea routes, energy exports and financial transactions, and a naval blockade of Hormuz has also been initiated.
Data from the US Treasury Department’s Office of Foreign Assets Control (OFAC) shows that the agency has imposed sanctions on more than a thousand individuals, vessels and aircraft since the beginning of Trump’s second term. In recent months, Iran’s shadow oil fleet, shipping insurance companies, institutions and individuals assisting in arms procurement, and digital crypto exchanges have been specifically targeted. As a result of these actions, approximately $500 billion in cryptocurrency assets linked to Iran have been frozen. At the same time, experts believe that the Trump administration is now considering even more comprehensive and dangerous options like…
Chinese ‘teapot’ refineries targeted
The largest share of Iran’s oil exports goes to China. According to Kpler data for 2025, China buys more than 80 percent of the total oil shipped from Iran. The bulk of this trade is handled by Chinese independent refineries, colloquially known as ‘teapots’. These refineries account for approximately one-quarter of China’s total refinery capacity and often operate at very low or negative profit margins.
Previous US sanctions had prevented large independent refineries from buying Iranian oil, but smaller teapots are still active in this trade. Sanctions experts say these refineries are loosely connected to the US financial system, making them relatively difficult to target directly. Yet if Washington imposes secondary sanctions, Iran’s oil revenues could take a hit.
Possible action on Chinese banks
OFAC has already imposed secondary sanctions on several small companies in China and Hong Kong. They are accused of processing Iranian oil worth billions of dollars and helping in purchasing weapons. The Treasury Department has also issued a formal warning to two major Chinese banks that sanctions could be imposed on them if Iranian funds are found passing through their systems. However, no action has been taken against these banks yet.
Experts believe that banning these big banks could have a serious impact on the global financial system. Besides, this will also increase the possibility of retaliatory action from Beijing. The Trump administration is trying to ease tensions ahead of a possible meeting between President Trump and Chinese President Xi Jinping later this year.
However, America is worried that China may cut exports of critical minerals needed for advanced technology, while America and its Western allies are still busy strengthening their supply chains.
‘Whack-a-Mole’ strategy continues
The US continues to target Iranian individuals and companies as well as middlemen operating in China and the Gulf countries who are helping Tehran generate revenue by evading sanctions. Recently the Treasury Department imposed sanctions on firms that help convert Iran’s oil revenues to pay for imports. Brett Erickson, managing director of Obsidian Risk Advisors, described the strategy as ‘whack-a-mole’. According to him, Iran immediately creates new institutions in place of banned institutions, due to which the impact remains limited.
Miyan Maleki, a sanctions expert at the Foundation for Defense of Democracies, said Finance Secretary Besant was probably signaling tougher action against oil shippers, buyers and currency exchangers. Further sanctions may also be imposed on the aviation sector, which will further weaken Iran’s international trade potential.
land blockade option
Some American and Israeli officials are also talking about a ground blockade. This will require active cooperation of Iran’s neighboring countries (Iraq, Türkiye, Pakistan, Afghanistan, Turkmenistan, Azerbaijan and Armenia). The Trump administration maintains relations with other countries at different levels except Afghanistan. However, the border areas are mountainous and inaccessible, making effective patrolling extremely difficult.
America may increase pressure on Pakistan, which has recently asked for a currency swap facility of $ 10 billion. Pressure on Türkiye is also possible, as it wants to rejoin the American F-35 fighter aircraft program. A ground blockade could affect supplies of food, energy and clothing to Iran, increasing pressure on civilians. But experts believe it is too difficult to implement in practice and is unlikely to generate mass protests or political pressure inside Tehran.
Secondary tariff threat
President Trump has repeatedly warned that he would impose heavy tariffs on goods from countries that trade with Iran. However, the Supreme Court has already rejected the legal basis for such a tax. Last week, the Senate passed a comprehensive sanctions bill on Russia, which includes new provisions related to Iran. The bill could give the President the power to impose additional tariffs against countries that aid Iran’s trade and arms purchases.
The bill now heads to the House of Representatives, where there are serious divisions between Democrats and some Republican lawmakers over the tariff provisions. Experts say that if this law is passed, the Trump administration will have another powerful weapon available to increase pressure on Iran.
