US Treasury warns sanctions on anyone facilitating Iran's oil, financial networks

Any individuals or vessels involved in facilitating Iran's financial or oil trade networks could face US sanctions, the US Treasury secretary warned on Tuesday. The US will continue a naval blockade of Iran's ports while intensifying financial pressure aimed at crippling the country's oil-driven economy, said Scott Bessent.

Kharg Island storage

"In a matter of days, Kharg Island storage will be full and the fragile Iranian oil wells will be shut in. Constraining Iran's maritime trade directly targets the regime's primary revenue lifelines," he said on X. He added that his department will continue implementing what he called a "maximum pressure" campaign to disrupt Iran's ability to generate, transfer, and repatriate funds.

Sanctions threat

"Any person or vessel facilitating these flows—through covert trade and finance—risks exposure to U.S. sanctions. We continue to freeze the funds stolen by the corrupt leadership on behalf of the people of Iran," he wrote.

Oil market impact

Oil prices Tuesday saw an extremely volatile session as President Donald Trump announced a two-week ceasefire with Iran would be extended, while Washington keeps its naval blockade in place. Trump had earlier said Iran wants the Strait of Hormuz open to "save face," claiming Tehran only says it wants the strait closed because the US has it blockaded.

Ceasefire extension

Trump announced that Washington would extend its ceasefire with Iran to allow time for Tehran to prepare a "unified proposal" following a request by Pakistani officials. The original two-week ceasefire, mediated by Pakistan, had been set to expire Wednesday evening Washington time.