US Launches Major Financial Offensive Against Iran Amid Strait of Hormuz Tensions

The United States is set to launch what Treasury Secretary Scott Bessent calls "the single greatest financial offensive ever" against Iran on Monday, aiming to intensify economic pressure amid ongoing conflict and stalled peace efforts.

The new sanctions will build on extensive existing measures targeting Iran's oil, shipping, financial, aviation, and cryptocurrency sectors. The timing follows a missed 60-day ceasefire window intended to end the Middle East war now in its sixth month, according to multiple reports.

Bessent framed the move as an "economic D-Day," warning that any country serving as a financial conduit for Iran will face isolation. He stated, "Any nation that serves as a financial artery of a withering regime should expect to share in its isolation," signaling possible secondary sanctions on foreign entities doing business with Tehran.

Iran's response has been defiant. Mohsen Rezaei, newly appointed secretary of Iran's Supreme National Security Council, cautioned Gulf neighbors against supporting US sanctions, threatening to regard them as enemies. He declared, "Any country that becomes a partner in creating economic restrictions against us will be regarded by us as an enemy," and warned, "If the economic war continues, not a single drop of oil will be exported, neither through the Strait of Hormuz nor from anywhere in the Persian Gulf."

Rezaei also indicated Tehran would retaliate "in a seismic manner" against US actions and target alternative oil shipping routes beyond the Strait of Hormuz.

Iran’s Foreign Minister Abbas Araghchi dismissed the new US sanctions as a "desperate" attempt unlikely to succeed. Meanwhile, Iran’s parliament approved a provision requiring fees for ships passing through Hormuz, signaling tighter control over this strategic chokepoint through which about a fifth of the world's seaborne oil previously flowed.

Despite tensions, shipping through the Strait of Hormuz has not seen confirmed attacks recently, although risks remain due to uncharted mines, according to the UK Maritime Trade Operations agency. Oil prices fell slightly amid these developments, with West Texas Intermediate dropping to $85.93 per barrel and Brent crude to $93.22.

Amid the escalating sanctions and threats, diplomatic efforts continue. Pakistani Army Chief Asim Munir is scheduled to visit Tehran to promote peace and discuss recent developments, as Iran and several other regional actors seek to mediate the conflict.

The conflict has inflicted heavy casualties and economic damage. Thousands have died, primarily in Iran and Lebanon, with significant destruction to Iran's military infrastructure and economy, which was already weakened by inflation, currency devaluation, and sanctions prior to the war.

US and Israeli strikes have targeted Iran since February 28, degrading conventional capabilities but leaving Iran's missile and drone capacities largely intact, sustaining a threat to Gulf neighbors and maritime traffic.