The U.S. Treasury unveiled sweeping new sanctions Monday aimed at cutting Iran off from the global economy, threatening penalties against any country or bank that keeps trading with Tehran. Iran's economy minister said the government is "fully prepared" to counter the measures, while China, the UAE, Turkey, Iraq and India are among Tehran's top trading partners and its main exposure to Washington's pressure.
Washington launches "economic D-Day"
The U.S. Treasury announced Monday it would penalize any entity that launders money for Iran, threatening to cut violators off from the U.S. dollar system as part of an "economic D-Day" campaign to isolate Iran. The move targets the trade lifeline that has sustained Tehran's economy through nearly six months of war.
Treasury Secretary Scott Bessent, presenting the plan as "Operation Economic Outcast," said Iran now faces a choice between complete isolation or a path back to the global economy. He declined to name the countries that would be targeted, saying he wanted to give them time to comply.
China and the UAE carry the heaviest exposure
China buys about 90% of Iran's oil exports and reported $9.96 billion in bilateral trade with Iran in 2025, separate from an estimated $31.2 billion in unreported Iranian crude oil exports that year. Beijing has publicly opposed the sanctions push, and its foreign ministry said the pressure tactics would not help.
The UAE, Iran's largest source of imports, traded about $28 billion with Tehran in 2024. That relationship hit a snag last week when the Emirates moved to suspend all trade and financial transactions with Iran after two ballistic missiles were fired toward Emirati territory.
Turkey, Iraq and India also tied to Tehran
Turkey and Iran traded $5.7 billion in 2024, with Iranian gas making up a growing share of Turkey's energy imports. Iraq's trade with Iran topped $10 billion in 2025, and Baghdad still pays Tehran billions annually for gas that accounted for more than 30% of Iraq's electricity generation in 2023. India's trade with Iran, meanwhile, has fallen to around $1.6 billion in the year through March 2026, though New Delhi resumed importing Iranian crude in April after a seven-year halt.
Tehran says it will not back down
Iranian Economy Minister Ali Madanizadeh told state television, "We are fully prepared for the U.S. sanctions," according to Reuters, adding that neither China nor Russia had accepted the U.S. measures. Iran's Revolutionary Guard also warned it would strike U.S. interests and energy chokepoints if its infrastructure came under threat.
The standoff has already rattled energy markets: Brent crude traded at $92 a barrel on Monday. Just two commodity vessels transited the Strait of Hormuz that day, the lowest daily tally since early May.
Sources: CNBC, BBC News, Reuters via Investing.com
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