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US-Israel-Iran War Latest Live News: The Trump administration is preparing to significantly expand the scope of secondary sanctions against entities and countries that continue doing business with Iran, according to a source familiar with the plans cited by Reuters. The move marks another major step in Washington’s campaign to increase economic pressure on Tehran amid the ongoing conflict and disruption to regional energy shipments.
US Treasury Secretary Scott Bessent is expected to outline the new measures at a press conference on Monday at 1 p.m. EDT (1700 GMT), according to the Reuters report. The announcement is expected to focus on companies, financial institutions and other entities that maintain commercial or financial connections with Iran.
US Plans Tougher Secondary Sanctions On Iran
The proposed measures would widen the range of activities that could expose Iran’s trading partners to US sanctions. Washington is expected to warn countries and businesses that continuing commercial ties with Tehran could put their access to the US dollar-based financial system at risk.
The administration has described the broader campaign as a major economic offensive against Iran. Bessent and President Donald Trump have previously characterised the strategy as an “economic D-Day.”
Reuters reported that the Treasury could sharpen enforcement against oil shippers, buyers and currency exchangers involved in helping Iran finance imports. The measures could also extend to other sectors, including aviation.
US-Israel-Iran War Live News: China In Focus As Washington Targets Iran Trade
China is likely to remain a key focus of the sanctions campaign because it has been Iran’s biggest oil buyer in recent years.
Reuters reported that Iranian oil shipments to China had fallen to about 534,000 barrels per day in August from around 823,000 bpd in July, although Chinese independent refiners continue to purchase Iranian crude.
Beijing has criticised unilateral sanctions and said it would take necessary measures to protect its interests. Chinese Foreign Ministry spokesperson Lin Jian said pressure and sanctions would not help resolve international disputes.
The potential impact on Chinese financial institutions is being closely watched, particularly as Washington and Beijing are also expected to engage in broader trade discussions.
US-Israel-Iran War Latest News: Strait Of Hormuz Disruption Adds To Economic Pressure
The sanctions announcement comes against the backdrop of severe disruption to shipping through the Strait of Hormuz, one of the world’s most important energy corridors.
Reuters reported that fewer than 20 commodity vessels crossed the strait over the weekend, with only four vessels recorded on Sunday and 13 on Saturday. Traffic during the week ending August 21 was estimated to be about 90% below pre-conflict levels, although ship-tracking data can be affected when vessels switch off their transponders.
The disruption has raised concerns about global energy supplies and increased transportation costs for oil and other commodities.
Middle East Oil Flows Remain Under Pressure
Tanker-tracking data cited in the information provided indicates that crude exports crossing the reported US naval blockade line have fallen sharply compared with earlier levels.
Reuters has separately reported that the US blockade and disruption around the Gulf have squeezed Iranian oil exports, while shipping activity through the Strait of Hormuz has fallen dramatically.
The impact is also being felt in refined fuel markets. Reuters reported that Asian imports of refined products such as diesel, gasoline and jet fuel have declined significantly from pre-conflict levels, highlighting concerns beyond the availability of crude oil itself.
Vessel Incident Reported Near Saudi Arabia
A separate maritime incident added to regional shipping concerns on Monday.
Reuters reported that a projectile struck a tanker west of Saudi Arabia’s Red Sea port city of Yanbu, causing a fire on the main deck, according to the United Kingdom Maritime Trade Operations. Yemen’s Houthi group claimed responsibility for an attack on a vessel in the area.
The incident highlights the continuing risks faced by commercial shipping as vessels seek alternative routes amid disruption around the Strait of Hormuz.
China And Jordan Call For Restraint
Diplomatic efforts to prevent further escalation are continuing alongside the economic pressure campaign.
China and Jordan have called for the existing US-Iran ceasefire to be maintained and urged restraint, according to the information provided. Meanwhile, Pakistan’s army chief Asim Munir travelled to Tehran on Monday as part of efforts aimed at promoting regional peace and reviving dialogue. Reuters reported that Pakistani officials described the visit as part of efforts to promote regional peace and stability. The diplomatic activity comes as Washington prepares to intensify economic pressure while Tehran continues to reject the US sanctions threat.
Iran Rejects New US Sanctions
Iran has dismissed Washington’s planned sanctions as ineffective. Iranian Foreign Minister Abbas Araghchi described the threat as a sign of US desperation and said the measures would not defeat Tehran, according to Reuters. Iran has also warned about the consequences of continued economic pressure and maintained its position on shipping through the Strait of Hormuz.
Economic Pressure Raises Risk For Iran’s Trading Partners
The proposed expansion of secondary sanctions could have consequences beyond Iran itself because companies and financial institutions in other countries may have to reassess their commercial relationships with Tehran.
The key question now is how broadly the US Treasury applies the new measures and whether major trading partners, particularly China, face additional restrictions. Bessent’s scheduled announcement is therefore being closely watched by governments, businesses, oil traders and financial markets as Washington seeks to tighten the economic squeeze on Iran while diplomatic efforts continue.
US-Israel-Iran War Latest Live News: What To Watch Next
The immediate focus will be on the details of the Treasury Department’s announcement, including which sectors and jurisdictions could face additional sanctions and how the US plans to enforce restrictions on Iran-related transactions. Energy markets will also remain sensitive to developments around the Strait of Hormuz, while any progress in US-Iran diplomacy could influence oil prices, shipping activity and the wider economic impact of the conflict.