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Get the latest updates on the war with Iran here.
Key developments
• Threat from Washington: The US is threatening damaging new sanctions on countries that refuse to cut economic ties with Iran — but has stopped short of actually imposing big new penalties. Treasury Secretary Scott Bessent also warned that groups helping Tehran launder money face expulsion from the US financial system.
• Iranian response: Finance Minister Ali Madanizadeh said Tehran is “fully prepared” to counter sanctions while top negotiator Mohammad Bagher Ghalibaf brushed off the US threats.
• Economic pressure: Iran’s currency has dropped to a record low against the dollar, and US President Donald Trump insists Iran is “collapsing.” Even though Iranians are suffering financially, the country is no stranger to economic pain.
• Talks with regional leaders: Pakistan’s army chief met with Iranian officials — including Ghalibaf — in Tehran today, according to Iranian state media. Oman’s foreign minister will also visit Iran tomorrow for talks on the Strait of Hormuz.
What to know about the US sanctions threat, the Strait of Hormuz and other news in Mideast
US Treasury Secretary Scott Bessent on Monday threatened new sanctions on countries refusing to cut economic ties with Iran, but stopped short of imposing new big penalties.
It comes as Iran’s currency, the rial, has dropped to a record low of more than 2 million to the US dollar on the open market, according to websites that track the currency’s movement.
US Treasury Secretary Scott Bessent warned of potential dire consequences for countries with economic ties to Iran. CNN's Kevin Liptak reports.
Here’s what to know about the sanction threats:
- US President Donald Trump has been calling world leaders with specific asks regarding the administration’s demand that they work with the US to isolate Tehran economically, according to Bessent. The secretary did not outline any specific timelines.
- The Treasury secretary declined to name the countries. However, China, India, Turkey, Iraq and the United Arab Emirates could be most at risk for US action, experts told CNN.
- The US is already targeting Iran’s oil sales, enforcing a blockade that is allowing much less Iranian oil to be exported to international buyers, including China, which is Iran’s main trading partner.
- Bessent declined to say whether the US is willing to target Chinese banks with sanctions.
- The secretary also threatened to punish groups that help Iran launder money by expelling them from the US financial system. Bessent said the public should expect a major sanctions announcement targeting an unspecified financial institution by the end of this week.
- After Bessent’s announcement, Iran’s top negotiator, Mohammad Bagher Ghalibaf, said the US is not in an economic position to restrict its relations with other countries. Iranian Finance Minister Ali Madanizadeh said Tehran is “fully prepared” to counter US sanctions.
Other top headlines in the region:
- Pakistan’s army chief, Field Marshal Asim Munir, met with Iranian officials Monday. Iranian security chief Mohsen Rezaei told Munir the US “must change its behavior and take concrete steps toward fulfilling the conditions of the memorandum of understanding.”
- Oman’s foreign minister Sayyid Badr al-Busaidi, will visit Tehran on Tuesday to discuss the Strait of Hormuz and other developments in the region.
- Saudi Arabia’s national shipping company Bahri said one of its tankers was involved in a security incident in the Red Sea, hours after Yemen’s Iran-backed Houthis claimed they had targeted the vessel in a missile attack.
- An unidentified projectile struck and disabled an oil tanker about nine nautical miles northeast of Oman’s Ash Shishah, the United Kingdom Maritime Trade Operations reported.
- Iran warned Bulgaria, a NATO member, against allowing its territory to be used for Israeli or US military action.
- Meanwhile, the US also officially lifted its state sponsor of terrorism designation on Syria.
CNN’s Hanna Ziady, Mohammed Tawfeeq, Adam Cancryn, Alayna Treene, Matt Egan, Betsy Klein, Aida Karimi, Jennifer Hansler, Eyad Kourdi and Mitchell McCluskey contributed reporting to this post.
Tanker struck by projectile off Oman's coast, UKMTO says
An unidentified projectile struck and disabled an oil tanker about nine nautical miles northeast of Oman’s Ash Shishah, the United Kingdom Maritime Trade Operations (UKMTO) reported early on Tuesday.
The tanker’s engine room was damaged, but the crew was reported safe, UKMTO said.
The environmental impact is not yet known, according to the organization.
“Vessels are advised to transit with caution and report any suspicious activity to UKMTO. Authorities are investigating,” UKMTO said.
Tehran is "fully prepared" for sanctions, Iran's finance minister says
Tehran is “fully prepared” to counter US sanctions targeting countries that maintain ties to Iran, Finance Minister Ali Madanizadeh told the state-run Islamic Republic of Iran News Network (IRINN) on Monday.
United States Treasury Secretary Scott Bessent announced the planned measures during a press conference on Monday as part of what he has dubbed an “economic D-Day” against the regime.
The official accused the US of wanting to “ wage economic terrorism” against Iran.
“We know how to play this game. This time, they should not think our response will be purely defensive and that we will only defend ourselves. They should also expect us to go on the offensive,” he added.
Here’s who could be impacted if the US follows through on sanction threats
US Treasury Secretary Scott Bessent earlier today warned of potential dire consequences for countries with economic ties to Iran.
“Every country has a defined timeline to shut down activities we have identified. If they do not take action, we will do so unilaterally through Treasury authorities,” Bessent said at a news conference.
Bessent declined to name the specific countries. However, China, India, Turkey, Iraq, and the United Arab Emirates could be most at risk for US action, experts told CNN.
According to the US-China Economic and Security Review Commission, China is Iran’s largest trading partner and purchaser of Iranian oil.
Iran sent $22.4 billion in exports to China and imported $15.6 billion from there in 2022, per the World Bank.
However, experts are skeptical that the administration will act strongly against China, especially ahead of Xi Jinping’s expected visit.
“The US government has never gone hard on economic sanctions on China,” said Tannebaum, who is also a partner at management consulting firm Oliver Wyman.
The UAE has historically been one of Iran’s largest commercial partners. However, it announced last week that it was suspending all trade and financial transactions with Iran “until further notice.”
Turkey has been a robust key trading partner for Iran, with more than $5 billion in bilateral trade in 2024, according to its Ministry of Foreign Affairs, and it imported 13% of its natural gas from Iran last year.
Iraq and Iran have historically traded billions, with Iraq being dependent on Iranian electricity and gas.
India’s trade with Iran has fallen in recent years, standing at around $1.6 billion in 2025-2026, according to India’s Department of Commerce.
Netanyahu praises Trump and Bessent's sanctions threats against Iran
Israeli Prime Minister Benjamin Netanyahu congratulated President Donald Trump and Treasury Secretary Scott Bessent after the US threatened new sanctions targeting countries with ties to Iran.
Bessent announced plans at a news conference today to place sanctions on countries that refuse to sever economic ties with Iran, but he stopped short of imposing new major penalties.
Netanyahu prasied the move in a post on X.
“You justly exact a steep price from that cruel dictatorship and from those who assist its continued aggression,” Netanyahu said.
Bessent sends "warning shot" to countries with economic ties to Iran. Here's the latest
United States Treasury Secretary Scott Bessent threatened new sanctions on countries refusing to cut economic ties with Iran in a news conference today.
Though the US Treasury Department stopped short of imposing new big penalties, the warnings come after recent rhetoric from Bessent and President Donald Trump threatened an “economic D-Day” for Iran.
Iran’s top negotiator, Mohammad Bagher Ghalibaf, fired back that the US is not in an economic position to restrict its relations with other countries and that “no one believes their bluster.”
Here’s what Bessent said earlier:
- Trump has been calling world leaders with specific asks regarding the administration’s demand to work with the US to isolate Tehran economically, according to Bessent. He did not say specifically which countries Trump has been in communication with, but added that “we’ve already seen some results.”
- Bessent did not outline any specific timelines for when countries must cut economic ties with Iran or face financial penalties.
- Bessent declined to say whether the US is willing to target Chinese banks with sanctions — a move that could jeopardize delicate relations between China and the Trump administration. China is Iran’s main trading partner.
- The secretary also threatened to expel groups that help Iran launder money from the US financial system. Bessent said the public should expect a major sanctions announcement targeting an unspecified financial institution by the end of this week.
- Defending the decision to hold off on issuing sanctions targeting countries tied to Iran, Bessent said his announcement today was a “warning shot.” The US, he said, is “giving everyone the opportunity to remedy bad behavior.”
More news you might’ve missed:
Pakistan’s army chief in Tehran: Pakistan’s army chief, Field Marshal Asim Munir, met with Iranian officials — including top negotiator, Iranian Parliament Speaker Mohammad Bagher Ghalibaf. Iranian security chief Mohsen Rezaei told Munir the US “must change its behavior and take concrete steps toward fulfilling the conditions of the memorandum of understanding.” Trump spoke by phone with Munir last week, a source told CNN.
Elsewhere in the region: Meanwhile, the US officially lifted its state sponsor of terrorism designation on Syria.
CNN’s Adam Cancryn, Alayna Treene, Matt Egan, Betsy Klein, Aida Karimi and Mitchell McCluskey contributed reporting to this post.
Trump spoke last week with Pakistan’s army chief, who met today with Iranian officials
President Donald Trump spoke by phone with Pakistan’s army chief, Field Marshal Asim Munir, last week, a source familiar with the conversation confirmed to CNN.
Munir met with Iran’s top negotiator in Tehran on Monday, according to Iranian state media, underscoring Pakistan’s potential role in efforts to revive diplomacy between Washington and Tehran.
Trump insisted Monday on social media that Iran is “COMPLETELY COLLAPSING.” However, according to reports, he discussed Iran in his conversation with Munir and asked Pakistan to use its influence to help restart negotiations.
US is "not in a position" to limit economic relations, Iran’s top negotiator says
After US Treasury Secretary Scott Bessent threatened new sanctions targeting countries with ties to Iran, top negotiator Mohammad Bagher Ghalibaf argued that the US is not in an economic position to restrict its relations with other countries.
Ghalibaf, Iran’s parliamentary speaker, wrote in a post on X that “Iran’s trading partners have stated — both publicly in the media and in messages sent to us — that they attach no importance to these remarks.”
Meanwhile, Iran’s semi-official Tasnim News Agency quoted a senior Iranian intelligence source as claiming the new US measures were aimed primarily at influencing public opinion rather than imposing meaningful new restrictions.
The source said the measures were “based solely on the design of Trump’s media team” and were intended to increase “psychological pressure on the people of Iran,” Tasnim added, without naming the source.
US "must change its behavior," Iran security chief says in meeting with Pakistani official
The United States “must change its behavior,” Iranian security chief Mohsen Rezaei said during a meeting Monday with Pakistan’s army commander, according to state-run Islamic Republic of Iran Broadcasting (IRIB).
Rezaei, secretary of Iran’s Supreme National Security Council, underscored Iran’s distrust of the US and spoke about Iran’s management of the Strait of Hormuz, IRIB reported.
Rezaei previously vowed to “neutralize the economic war” with the US and threatened to halt the flow of oil through the Strait of Hormuz unless the Americans “honor their commitments.”
Bessent defends sanctions threat as a "warning shot and level-set of expectations"
Treasury Secretary Scott Bessent defended the decision to hold off on issuing crippling sanctions targeting nations tied to Iran, casting the “economic D-Day” announced Monday as a “warning shot.”
“We believe that a warning shot and a level-set of expectations is appropriate,” Bessent told CNN’s Kevin Liptak at a press conference.
The US, he said, is “giving everyone the opportunity to remedy bad behavior,” adding that applying the sanctions immediately without any warning could “blow up the global financial system.”
Bessent added: “We believe that it is important to level-set and give people a cure period, but they should know that that will move very quickly and that we are serious.”
The US is threatening sanctions on countries with economic ties to Iran, with each country given “a defined timeline to shut down the Iran-related activity” identified by the US, the Department of Treasury said in a statement.
Bessent declined to lay out those specific timelines during his press conference, nor did he name the countries that the US has been in contact with.
Bessent: Firms that aid Iranian money laundering will be removed from the US dollar system
Treasury Secretary Scott Bessent is threatening to expel groups that help Iran launder money from the US financial system at the heart of the global economy.
“Let me clear: Any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system. The clock just started ticking,” Bessent said during his prepared remarks on Monday.
In a press release, the Treasury Department used somewhat softer language, saying any entity that facilitate money laundering or sanctions evasion “risks being cut off from the US financial system.”
Asked if Chinese banks could face secondary sanctions for their alleged role in helping Iran, Bessent said the best approach is through “quiet diplomacy,” but added that “no one is above the reach of US sanctions.”
Bessent said the public should expect a major sanctions announcement targeting an unspecified financial institution by the end of this week.
Bessent sends message to “ordinary soldiers" in Iran, saying they should question leaders
US Treasury Secretary Scott Bessent on Monday sent a message to Iranian soldiers that should question their military leadership and suggested they could act to bring down the government in Tehran.
Administration officials, including President Donald Trump, have raised the prospect of regime change at various points in the war, including at its outset, but have also claimed that was not the goal of the US operations.
It is unclear if “ordinary soldiers” would have been able to see his message, given restrictions in Iran.
Bessent declines to lay out timelines for when countries must cut economic ties with Iran
Treasury Secretary Scott Bessent declined to lay out specific timelines for when countries must cut economic ties with Iran or face financial penalties from the US.
Bessent said President Donald Trump has been calling world leaders with specific asks regarding the administration’s demand to work with the US to isolate Tehran economically. However, he refused to name which countries Trump has been in communication with.
“We’ve already seen some results,” Bessent claimed, adding that the US Treasury and State departments will follow up with visits and calls of their own. The departments will tell each country “exactly what we expect and the timelines.”
“And I would expect that very quickly, if they do not respond, then you will see the ramifications of their actions,” Bessent said.
Treasury secretary dodges on US' willingness to sanction Chinese banks
US Treasury Secretary Scott Bessent declined to say whether the US is willing to target Chinese banks with sanctions — a move that could jeopardize delicate relations between China and the Trump administration.
Bessent on Monday threatened to penalize countries that refuse to cut economic ties with Iran. But pressed on whether that would include Tehran’s main trading partner, China, he said only that “no one is above the reach of US sanctions.”
“If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted,” Bessent said. “We know who they are. They know who they are.”
China has long purchased as much as 90% of Iran’s oil exports, in addition to maintaining a broader trade relationship.
Treasury threatens new sanctions on nations tied to Iran — but isn't following through yet
The US Treasury Department threatened damaging new sanctions on countries that refuse to cut economic ties with Iran — but stopped short of actually imposing big new penalties.
“We find that the best way to engage with countries is through quiet diplomacy, and we are level-setting with every country to tell them our expectations,” Treasury Secretary Scott Bessent said. “We know who they are. They know who they are.”
In a new effort to ramp up pressure on Tehran, the Trump administration said Monday that it has expanded the categories of “Iran-related conduct” that the US might sanction in the future, and that it plans to give nations specific defined timelines to end their relationships with the regime.
The new sanctions include penalties that cover sectors like digital assets, technology and shipping that the Treasury Department determined Iran has relied on to prop up its economy.
Yet despite Bessent’s vow of an “economic D-Day” for Iran, the US is holding off on imposing the biggest sanctions that it has threatened.
Instead, the administration said it will work with “counterparts around the world” to shut down their activity tied to Iran.
NOW: Treasury Secretary Scott Bessent holds news conference after issuing warning to Iran
US Treasury Secretary Scott Bessent is now holding a news conference, after he warned in an op-ed Sunday that an “economic D-Day is coming for Iran.”
He also threatened countries that do business with Tehran but gave little detail.
The secretary’s comments echo remarks by President Donald Trump, who last week also threatened an “economic D-Day” against Iran as the US is seeking to ratchet up the economic pressure to get Tehran to return to the negotiating table.
We’ll have updates as the news conference gets underway.
Pakistan's army chief meets Iran's top negotiator amid regional diplomacy efforts
Pakistan’s army chief, Field Marshal Asim Munir, met Iranian Parliament Speaker Mohammad Bagher Ghalibaf on Monday, as Islamabad continues diplomatic efforts aimed at supporting regional stability and security, according to Iran’s state-run Islamic Republic of Iran Broadcasting (IRIB).
During the meeting, Ghalibaf criticized Washington over what he described as repeated failures to honor commitments under the “Islamabad memorandum of understanding.”
“The commitments of both sides under the memorandum are clear. It was the United States that, by failing to uphold its commitments, prevented stability from being established in the region and provided yet another reason for mistrust,” Ghalibaf said, according to IRIB.
Ghalibaf, the head of Iran’s negotiating team, said Tehran remains committed to implementing the conditions outlined in the agreement and rejected the idea that Iran would yield to pressure.
“We are pursuing the implementation of the conditions set out in the memorandum. It is the United States that must fulfill its commitments under the agreement,” he said.
Munir, for his part, said Pakistan would continue efforts to help restore stability in the region, according to IRIB.
Get up to speed on the weekend’s key developments involving the Strait of Hormuz
Tensions remain high in the Strait of Hormuz as traffic through the critical waterway continues to be heavily restricted.
The strait has been a major flashpoint since Tehran effectively closed it following US and Israeli airstrikes on February 28.
Oman’s Foreign Minister Sayyid Badr Al-Busaidi is scheduled to visit Tehran tomorrow to discuss the Strait of Hormuz and other regional developments. The two countries have been in talks on new shipping routes through the waterway.
If you’re just joining us, here’s a recap of the latest key developments:
- Iran’s state-controlled Persian Gulf Strait Authority (PGSA) warned on Sunday that vessels accused of violating its transit rules in the strategic waterway could face penalties, including detention or confiscation, signaling potential risks for shipping through one of the world’s most strategically important waterways.
- Iran has granted permission to a number of Iraqi oil tankers to pass through the Strait of Hormuz, the Reuters news agency reported, citing the Iranian state-run Islamic Republic News Agency (IRNA). IRNA reported that the decision came after repeated appeals from Baghdad, one of its main requests during Iranian Parliament Speaker Mohammed Bagher Ghalibaf’s visit, according to Reuters.
- Tehran’s security chief, Mohsen Rezaei, vowed to “neutralize the economic war” with the United States and threatened to halt oil flow out of the Strait of Hormuz, Iran’s state-affiliated Press TV reported. The threat comes despite Iran allowing some Iraqi oil tankers to pass through the waterway.
CNN’s Laura Sharman, Xiaoqian Lin and Mohammed Tawfeeq contributed to this report.
Bessent needs to target China for his "economic D-Day" to have real teeth
Treasury Secretary Scott Bessent promised new sanctions on Monday that are so punishing it will amount to an “economic D-Day” for Iran.
But to make good on that pledge, he’ll also have to escalate tensions with a far more formidable economic opponent: China.
Bessent’s sanctions plan will need to target Chinese companies and banks to have any shot at cutting off Iran’s main financial lifelines, economic analysts told CNN. That’s a major step that the administration has so far been unwilling to take, amid concerns it would damage the relationship between President Donald Trump and Chinese President Xi Jinping — particularly ahead of an anticipated state visit next month.
China has long bought as much as 90% of Iranian oil exports, in addition to trading a range of other goods, making it Iran’s largest trading partner. The US has sanctioned some smaller Chinese firms since its war with Iran began, but it has refused to act against the larger banks facilitating the country’s purchases from Iran.
Targeting those banks on Monday would signal that the US is serious about isolating Iran and forcing it back to the negotiating table, analysts said. But there’s plenty of skepticism that Trump would greenlight such a move.
