4 minPolitics
Trump’s new Iran sanctions aim to force economic collapse
The Trump administration announced a new round of sanctions against Iran, intensifying economic pressure to force Tehran into a nuclear deal. The measures follow the military campaign Operation Epic Fury and the Strait of Hormuz blockade, which have already weakened Iran’s economy.
The Trump administration is escalating its economic campaign against Iran with a new round of sanctions designed to force Tehran into a nuclear agreement. Treasury Secretary Scott Bessent announced the measures, described as the “D-Day” sanctions of Operation Economic Outcast, which aim to cut off Iran’s remaining financial lifelines and push its economy toward collapse.
The move builds on the military pressure of Operation Epic Fury, which critics had questioned as a failure. Supporters argue that the military campaign actually strengthened the administration’s hand by degrading Iran’s energy infrastructure and export capacity, making the new sanctions more effective than previous efforts. The administration’s goal is to present every nation with a clear choice: do business with the United States or with Iran, which it labels a terrorist state.
During President Donald Trump’s first term, the Maximum Pressure campaign reduced Iran’s oil exports from 2.5 million barrels per day to below 400,000 barrels, drove inflation to 30 percent, and cut accessible foreign currency reserves from $122 billion to $12 billion. The Biden administration later eased enforcement of sanctions to encourage negotiations, but Iran did not respond with concessions. Oil exports rebounded to 1.6 million barrels per day, reserves grew to $26 billion, and unemployment fell to a record low of 7.2 percent, but the funds were used to expand the military budget, advance the nuclear program, and support regional proxies, according to the administration’s account.
After returning to office in 2025, Trump reimposed Maximum Pressure. The economic situation in Iran had already deteriorated, with inflation at 50 percent and the rial trading at about 1.87 million to the dollar. The Twelve-Day War last year and Operation Epic Fury compounded the damage by destroying energy infrastructure, including at Kharg Island and the South Pars gas field, as well as petrochemical facilities. The U.S. blockade on Iranian exports through the Strait of Hormuz, imposed last April, has cost Iran an estimated $13 billion per month and cut off critical imports.
Iran’s own estimates suggest a 10 percent economic contraction, with the rial hitting a record 2 million to the dollar and inflation climbing higher. The banking system is under acute stress, with one major bank collapsed and five others in trouble. Regional neighbors have been alienated, and even traditional clients like China are wary of the risks of continued commerce with Iran.
The new sanctions go further than previous measures. Iranian airlines will be barred from flying, bank branches will be closed, and any entity that does business with the regime will be considered complicit in its terrorism and cut off from the U.S. financial system. A wind-down period will be allowed for allies, but no exemptions will be granted.
Administration officials argue that Iran could still avoid economic catastrophe by renouncing its nuclear program and ceasing to project hostile power beyond its borders. They say the deal Trump has offered remains on the table. If Tehran refuses, the administration warns, Iran’s economy will soon cease to exist, and the regime will have only itself to blame.
