US Plans New Bank Sanctions as Trump Administration Steps Up Economic Pressure on Iran

The administration of US President Donald Trump plans to impose sanctions on another bank this week as Washington intensifies efforts to economically isolate Iran, Treasury Secretary Scott Bessent said Sunday.

Bessent told The Associated Press that the administration was prepared to take tougher financial measures against Iran as the conflict between the two countries approaches its six-month mark.

“This is going to be financial violence if we have to,” Bessent said. “We are showing people that we know who you are, you know who you are, and this has got to stop.”

Bessent spoke ahead of Group of 20 meetings in Asheville, North Carolina, where he is scheduled to hold talks with finance officials from major and developing economies. A key part of his discussions will be encouraging international cooperation with Washington’s campaign against Iran.

The administration has recently indicated that it wants to shift its focus from military operations toward economic pressure. However, fighting intensified again Sunday when US forces struck Iranian rocket launchers near the Strait of Hormuz, ending a month-long pause in direct US military action.

Iran condemned the attack as deadly and vowed to retaliate, raising fresh concerns about the wider consequences for the region and global energy supplies.

So far, Washington has largely relied on warnings rather than imposing new sanctions on countries that continue trading with Iran. That approach could change as the administration expands its economic campaign.

China is expected to be a major focus of Bessent’s discussions at the G20. China is Iran’s largest trading partner and its biggest buyer of Iranian oil.

Bessent said he would speak with Chinese officials and that “all options are on the table” regarding possible sanctions against Beijing because of its continued purchases from Iran.

He rejected suggestions that Washington was unwilling to confront China over the issue, describing that claim as a false narrative. Bessent said China and the United States share an interest in reopening the Strait of Hormuz and preventing Iran from developing a nuclear weapon.

The Treasury Department’s first formal step in the new economic campaign came Friday, when it proposed a rule that would cut the Emirati branches of Banque Misr, Egypt’s second-largest bank, off from the US financial system if the measure is finalised.

The decision to stop short of directly sanctioning the Egyptian bank appeared to reflect caution over penalising major countries that maintain commercial ties with Iran, including China and India.

The planned new bank sanctions could signal a tougher phase in Washington’s campaign, particularly if the administration begins targeting financial institutions and trading partners that continue to support Iran’s economy.