US intensifies economic sanctions on Iran

Six months into the US-Israel war with Iran, the Trump administration has shifted from military strikes to an intensified economic pressure campaign, dubbed an 'economic D-Day.' The US Treasury, led by Secretary Scott Bessent, imposed new sanctions targeting Iran's financial lifelines, including a proposed rule to cut off Banque Misr's UAE branches from dollar transactions, and sanctions on a Hong Kong entity and a person linked to Bank Melli Iran. Washington warned trading partners, notably China and India, to cut business ties or face secondary sanctions, though it stopped short of imposing penalties on them. Iran's economy is under severe strain, with annual inflation at 66% and foreign trade down 35%, according to President Masoud Pezeshkian. Supreme Leader Mojtaba Khamenei urged the government to address economic hardship and banned acts harming social cohesion. Diplomatic efforts continue, with Qatari PM Al Thani meeting Iranian leaders and Iran-Oman talks on the Strait of Hormuz, but negotiations remain at an impasse. The war has cost the US over $37.5 billion and is affecting global markets, with oil prices elevated and stock markets volatile. Gulf nations are investing in alternative infrastructure to reduce reliance on the Strait of Hormuz.