Iran sanctions steps to be announced next week: Bessent

U.S. Treasury Secretary Scott Bessent said Washington plans to announce new steps targeting Iran next week, according to officials familiar with the matter. Officials said the aim is to increase pressure on revenue linked to Iranian oil and related flows, a shift that could also affect crude supply depending on how measures are applied.

Officials said the lead-up to the expected announcement has included direct warnings to two large Chinese banks that they could face penalties if Iranian funds move through their systems. Traders said oil prices were steady and that markets were treating the anticipated measures as a gradual escalation rather than an immediate disruption.

Officials said the administration has not imposed formal China’s role in Iran crude trade complicates enforcement Officials said China purchases the bulk of Iran’s Officials said China purchases the bulk of Iran’s crude, with significant volumes ending up at small independent “teapot” refiners. They said those buyers often have limited exposure to the U.S. financial system, which can make direct financial pressure more difficult to apply through conventional channels. In that setting, officials said Treasury has signaled that banking pathways could become a central focus if Iranian-linked funds are found to transit major financial institutions. Officials said the administration has not imposed formal sanctions on the two banks so far, as a planned meeting between President Trump and President Xi Jinping approaches. Options include UAE exchange houses and expanded secondary sanctions Officials said one option under review is tighter action against United Arab Emirates exchange houses that convert yuan proceeds from oil transactions. Another proposal being discussed, officials said, would broaden secondary sanctions modeled on measures previously used against North Korea. Officials also said Washington is considering shifting from Officials also said Washington is considering shifting from freezing to confiscating Iranian assets that are already within U.S. jurisdiction. They did not detail the scope, sequencing, or legal basis for any such move in the comments described. Legal and logistical limits shape the menu of pressure tools Officials said some broader tools face constraints. They said a land blockade would require cooperation from neighboring countries and would face logistical obstacles. They also said secondary tariffs face legal constraints They also said secondary tariffs face legal constraints after a Supreme Court ruling, limiting how that tool could be used. Treasury officials said fresh steps could arrive by August 23, 2026, though the timing and final package were not described in detail.

Traders watch for financing choke points and China’s response Traders and policymakers, officials said, will be watching China’s response closely, including any spillovers to critical mineral supplies and broader commodity flows. Traders said the key market question is how directly the measures touch financing channels and the practical routes used to move oil proceeds.

For now, traders said the market is treating the coming announcement as a process rather than a single event, with uncertainty centered on the sequencing of steps and how aggressively enforcement targets intermediaries.