Potential Options for the Trump Administration to Increase Economic Pressure on Iran

US President Donald Trump vowed on Friday to exert severe economic pressure on Iran, a day after Treasury Secretary Scott Bessent stated that Washington would soon impose measures on Tehran that have “never been seen.” Since the conflict began in February, the United States has implemented additional maritime, energy, and financial sanctions and initiated a naval blockade of the Strait of Hormuz. Data from the US Treasury’s Office of Foreign Assets Control (OFAC) indicates that over 1,000 individuals, vessels, and aircraft have been sanctioned since the start of Trump’s second term.

Experts suggest the Trump administration may explore further options, including targeting independent Chinese refineries, known as “teapots,” which purchase a significant portion of Iranian oil. While these refineries have limited exposure to the US financial system, experts note that Washington could attempt to pressure them through secondary sanctions.

Another option involves imposing secondary sanctions on major Chinese banks accused of facilitating Iranian oil transactions and funding weapons procurement. However, analysts warn that such a move could trigger retaliatory actions from Beijing. The administration is also continuing a “whack-a-mole” approach, targeting new entities created by Tehran to evade sanctions, though critics argue this has not significantly altered Iran’s behavior.

Some US and Israeli officials have also floated the prospect of a land blockade, which would require the cooperation of Iran’s neighbors. Experts note that such a move would be difficult to execute due to geographical and political complexities. Additionally, there are legislative efforts in the US Congress to grant Trump new powers to impose secondary tariffs on countries that trade with Iran, though this faces resistance in the House of Representatives.