US widens Iran sanctions, threatens countries that keep trading
Why it matters: Washington could use dollar-system leverage on partners such as Iraq as oil prices rise and Hormuz traffic stays disrupted.
The United States expanded sanctions on Iran and warned that any country or bank helping keep Tehran connected to global trade could be cut off from the dollar-based financial system. Treasury Secretary Scott Bessent cast the move as a broad financial offensive aimed at blocking Iranian revenue, while Iran said it had prepared for the measures and expected China and Russia to resist them. Reuters analysis cited Iraq as a likely test case because Washington has strong leverage over Baghdad through oil revenue flows and past sanctions on Iraqi banks. The pressure campaign comes as the conflict has pushed up oil prices and shipping through the Strait of Hormuz remains effectively blocked.