US Treasury to unveil sweeping Iran sanctions as rial hits record low

Iran’s currency reached a record low on informal markets Monday as the US Treasury prepared to announce new sanctions that officials described as the broadest economic measures yet imposed on the country. The rial traded at 2.02 million to the dollar, compared with the official Central Bank rate near 1.5 million. Treasury Secretary Scott Bessent is scheduled to detail the package at a press conference later in the day.

Bessent wrote in the Financial Times that the measures would constitute “the single greatest financial offensive ever marshaled against an adversary” and would sever every economic lifeline sustaining the Iranian government. President Trump had previously warned that any country whose banks, ports or companies continued to transact with Iran would face US penalties. The new steps build on an existing naval blockade of Iranian ports and sanctions already targeting oil, shipping and financial sectors.

Iranian officials responded by labeling the planned actions an infringement on sovereignty and an act of economic warfare. Foreign Ministry spokesman Esmaeil Baghaei said no state could compel foreign entities to cut ties with Iran. Security official Mohsen Rezaei stated that any country joining the sanctions would be treated as an enemy and warned that no oil would leave the Persian Gulf if neighbors participated. Iranian Foreign Minister Abbas Araghchi called the approach a repeat of failed past policies.

The rial’s decline follows nearly six months of conflict that began February 28 and includes a US and Israeli military campaign against Iranian targets. Iran has maintained control over shipping through the Strait of Hormuz, through which roughly one-fifth of global oil trade normally passes. China purchases the large majority of Iran’s exported oil, and analysts note that enforcement against Chinese buyers would determine the measures’ reach.

Gulf states have shown mixed responses. The UAE suspended trade with Iran after ballistic-missile incidents. China’s Foreign Ministry called for diplomatic solutions rather than additional sanctions. Russia maintains commercial and military links with Iran that predate the current escalation. Bessent has said the goal is to isolate Tehran without requiring further military action.