US Treasury to unveil new Iran sanctions after warnings

U.S. Treasury Secretary Scott Bessent is set to unveil new sanctions against Iran Monday as Washington escalates economic pressure during the nearly six-month war, while Tehran and Oman plan continued talks on managing the Strait of Hormuz. Bessent warned the measures would be an “economic D-Day.”

The currency market reflected the strain as Iran’s rial fell to a record low of 2.02 million to the U.S. dollar on informal currency markets, with traders citing the impact of the sanctions effort. Talks between Iran and Oman on managing the Strait of Hormuz are set to continue Tuesday, with discussion including possible fees for ships and specific routes through the chokepoint.

South Korea said the United States canceled a large, joint amphibious Ssang Yong drill scheduled for next month because of force limitations amid the Iran conflict.

Iran warned that vessels violating transit arrangements in the Strait of Hormuz could face restrictions, including fines, detention, or confiscation. “The single greatest financial offensive ever marshalled against an adversary,” said Bessent.

In remarks reported as written for the Financial Times, Bessent also urged Iran’s allies to sever ties with Tehran, arguing that would deepen access to global capital, reinforce confidence in markets, and improve their standing in the world economy. “We are apologetic that these problems exist, as we find ourselves in a full-scale economic, military, and security war,” said Iran President Masoud Pezeshkian.

Financial reporting and currency trackers pointed to broader strain on Iran’s economy as the rial slid and the economic crisis deepened, with the International Monetary Fund expecting the economy to contract by more than 5% this year and food inflation to exceed 100%. Oman’s Foreign Minister is expected to travel to Tehran for talks on the Strait of Hormuz, according to Esmail Baghaei. In a statement, Iranian officials said ships violating the transit rules could face penalties including detention or confiscation, as Iran outlined its approach to the waterway.

A ship was struck by an unknown projectile in the Red Sea off Saudi Arabia, UKMTO reported Monday, with a fire on the main deck and no reported environmental impact.

Greek media reported the Greek military moved a Patriot interceptor system to Crete in response to Iranian threats, while the Greek defense ministry did not comment on the reported transfer.