Here's the latest
• Strait of Hormuz: Iran and Oman outlined a joint proposal to establish a temporary shipping lane and launch a demining effort in the critical waterway. Meanwhile, US President Donald Trump earlier said all mines in the strait have been removed, and he threatened to destroy any boats that try to place more.
• US pressure: The US Treasury Department has begun its new campaign to tighten sanctions against Iran, targeting aviation, shipping, technology, gold and digital assets such as cryptocurrency. Even though the measures target the regime, ordinary Iranians will inevitably be affected.
• Secondary sanctions: The US is also threatening damaging new sanctions on countries that refuse to cut economic ties with Iran — but has stopped short of actually imposing big new penalties.
• China’s response: Beijing says the new measures “will only further intensify tensions” and that China’s cooperation with Iran should not be disrupted. Iran claims it is “fully prepared” to counter the sanctions.
Are you cutting more spending amid high gas prices? Share your story
High gas prices continue to weigh on Americans, with AAA forecasting this August could be the highest for this month on record. That’s forcing some folks to cut back on their spending even more this summer.
Although Trump administration officials promised that the spike in prices would subside, the cost remains far higher than it was when the US-Iran conflict began in late February.
On Tuesday, a gallon of regular gas cost $4.10, on average, nationwide, according to AAA. That compares to $2.98 a gallon on February 28.
Are you taking additional steps to curtail your spending as gas prices remain high? Have you had to cancel or modify summer travel plans?
Tell us more using the form below.
A look at the new US sanctions on Iran aimed at severing "every economic lifeline"
A sweeping new US sanctions campaign targeting Iran and its economic partners is drawing criticism from China and defiance from Tehran, with senior Iranian officials vowing Washington’s economic pressure will fail.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf claimed Tuesday that after suffering defeat “in the military and political war,” the United States “will also be defeated in its economic actions,” according to Iran’s semi-official Tasnim News Agency.
Here’s a look at what’s in the new measures under the Trump administration’s “Operation Economic Outcast,” a campaign Treasury Secretary Scott Bessent described as an effort to “sever every economic lifeline” sustaining Iran’s government.
Sanctions on more than 60 targets: According to Bessent, the Treasury Department’s Office of Foreign Assets Control is sanctioning “over 60 entities, individuals, and vessels across the world” accused of helping Iran procure nuclear and missile technology, conduct cyber operations and generate oil revenue.
Five sectors targeted : The administration announced new sanctions determinations covering five sectors that Washington views as critical to Iran’s economy: digital assets, technology, gold, aviation and shipping. Bessent said the measures increase the risk of sanctions for foreign companies and individuals that continue doing business with Iran in those sectors.
Pressure on countries dealing with Iran: The treasury secretary said US officials are meeting governments worldwide and informing them that Washington expects action against economic activities linked to Iran. “Every country has a defined timeline to shut down activities we have identified,” Bessent said. “If they do not take action, we will do so unilaterally through Treasury authorities.”
Iranian financial networks in focus: Bessent specifically singled out Iran’s Bank Melli, saying: “Every Bank Melli branch must be shuttered.” He also warned that entities facilitating money laundering on behalf of Iran could lose access to the US dollar system.
Oil exports and sanctions evasion: The treasury secretary said Washington has mapped Iran’s networks used to “smuggle oil and evade sanctions” and pledged a “zero-leakage approach” to cut off revenue streams that fund the Iranian government and the Islamic Revolutionary Guard Corps.
Iran and Oman propose temporary Strait of Hormuz deal, officials say
Iran and Oman outlined a proposal Tuesday to jointly establish a temporary shipping channel through the Strait of Hormuz, according to regional officials, after weeks of fraught discussions between the two countries.
Tehran and Muscat discussed a “phased framework” for a joint project facilitating a “temporary shipping corridor” and to “clear mines,” a press statement from the Iranian and Omani foreign ministries said.
Officials will carry on talks “with the aim of reaching agreement on a permanent shipping corridor and the future administration of the Strait,” the statement added.
Omani Foreign Minister Badr bin Hamad Al Busaidi visited Iran and held consultations with Iranian Foreign Minister Abbas Araghchi, the state-run Oman News Agency (ONA) reported earlier.
After the meeting, the Omani foreign minister said he was “hopeful” both nations would “soon announce a temporary corridor” for the strait. “Future management of the Strait and a permanent solution will follow in due course,” he posted on X. “Discussions with regional partners will be conducted in support of peace and cooperation, stability and freedom of navigation,” Al Busaidi added.
Araghchi wrote in a post on X that the proposed deal showed that “Iran’s commitment to peace and stability is matched by steadfast diplomacy with our neighbors.”
Over the past few weeks, Tehran and Muscat held negotiations to stabilize shipping in the waterway, which has emerged as a key bargaining chip in stalled discussions between Iran and the US, following months of regional violence.
Earlier today, US President Donald Trump reiterated that all mines in the Strait of Hormuz have been removed or detonated, and he threatened to destroy any boats that try to place more. “We are watching every square inch of the strait,” he said.
China rebuffs US sanctions on Iran as Strait of Hormuz tensions persist. Catch up here
Beijing warned today that the United States’ threat of economic sanctions on Iran “will only further intensify tensions” and that China’s cooperation with Iran should not be disrupted.
The criticism from China comes a day after US Treasury Secretary Scott Bessent vowed an “economic D-Day” for countries that buy oil from Iran.
Meanwhile, Iran and Oman outlined a proposal today to establish a temporary shipping channel through the Strait of Hormuz, according to regional officials, after weeks of fraught discussions between the two countries.
The announcement came as President Donald Trump reiterated that all mines in the critical waterway have been cleared and threatened to destroy any Iranian ships that try to place more.
If you’re just joining us, here are the latest headlines:
- Global oil prices dipped as traders wait for more concrete details on economic sanctions against Iran and its trading partners. Brent futures, the global benchmark, declined 2% to trade at $90 a barrel just before 5 a.m. ET. Meanwhile, WTI futures, the US benchmark, dropped 2.4% to $83 around the same time.
- The semi-official Tasnim News Agency reported that Iran is seeking a return to the memorandum of understanding signed between Tehran and Washington in June, citing an unidentified source.
- Trump accused Iran of failing to pay large portions of its military while killing protesters, describing the situation as a “humanitarian crisis of epic proportions.” Trump did not provide evidence for his claims.
- Separately, the US Secret Service said it’s aware of a video aired by Iran’s state broadcaster appearing to threaten the life of Barron Trump, the youngest son of the US president.
- In Iran, workers have seen their base wage more than halve in the last decade, plunging from $232 to $83 per month in real terms, as sanctions, crises and war have squeezed the country’s economy, according to state-affiliated media. Iran’s currency — the rial — is incredibly weak and dropped to a record low of two million against the US dollar yesterday.
- Drivers in the Iranian capital of Tehran are experiencing long lines at gas stations and temporary fuel shortages, according to Iranian news agencies, although authorities have insisted the overall fuel supply chain remains stable. It comes as US strikes on Iranian oil storage infrastructure, the US blockade and fears of rising inflation are believed to be triggering fuel shortages and subsequent rushes on gas stations.
CNN’s Aida Karimi, Issy Ronald, Lauren Kent, Nadeen Ebrahim, Alejandra Jaramillo, Holmes Lybrand, Todd Symons, Sana Noor Haq and Mohammed Tawfeeq contributed to this report.
Trump says US will destroy any Iranian ships that place more mines in the Strait of Hormuz
President Donald Trump said again Tuesday that all mines in the Strait of Hormuz have been removed or detonated — and threatened to destroy any boats that try to place more.
“I have just been informed by the United States Navy that all mines have been removed and/or detonated from within the International Waters of the Strait of Hormuz. Iran has been notified that any ship or boat placing new mines will be immediately and systematically destroyed,” Trump wrote in a Truth Social post.
“Through Space Force, we are watching every square inch of the Strait, as we are, also, with Pickaxe Mountain and the already destroyed three other Nuclear sites. There is a Zero Tolerance policy on mine placement in full force and effect,” the president added.
Trump has repeatedly claimed that the US Navy has cleared mines from the strategically vital waterway, including in comments last week, as he seeks to project progress amid the war with Iran. He has also insisted that the US controls the strait.
Earlier this month, Trump announced the cancellation of planned US strikes against Pickaxe Mountain, a deeply buried nuclear site that Israel believes Iran has used to store part of its enriched uranium stockpile and advanced centrifuges.
Iran seeks return to June agreement with the US, Iranian media reports
Iran seeks a return to the memorandum of understanding signed between Tehran and Washington in June, according to the semi-official Tasnim News Agency, citing an unidentified source.
An “informed source” told Tasnim that Pakistan’s army chief, Field Marshal Asim Munir, “was not carrying a threat or any similar message from the United States” when he visited Tehran on Monday.
“Rather, he was seeking to open space for negotiations and to convey Iran’s conditions and positions to the American side,” Tasnim reported, citing the source, who added that “a US return to the Islamabad agreement and implementation of its provisions – including Article 5, concerning Iranian arrangements for the Strait of Hormuz – is among Iran’s conditions.”
The conditions were relayed to the Pakistani intermediary, who is expected to convey them to the US, the source was cited as saying.
The MOU, signed June 17, aimed to expand on a ceasefire between the US and Iran and get traffic flowing through the Strait of Hormuz. The agreement collapsed after disagreements over interpretation and management of the waterway.
On Tuesday, Pakistan’s interior minister Mohsin Naqvi said he and army chief Munir had a “very positive and productive meeting” with Iranian President Masoud Pezeshkian and that “significant progress” was made in talks about the conflict.
On Monday, Iran’s state-run Islamic Republic of Iran Broadcasting (IRIB) reported that Mohammad Bagher Ghalibaf, Iran’s parliament speaker and top negotiator, said Tehran remains committed to implementing MOU but that the US must honor its commitments as well.
Iranian and Omani foreign ministers meet in Tehran
Omani Foreign Minister Sayyid Badr Albusaidi met with Iranian Foreign Minister Abbas Araghchi on Tuesday in Tehran, Iran’s Foreign Ministry said, amid escalating tensions between Tehran and Washington.
Both Iran and Oman have coastlines along the Strait of Hormuz, which has effectively been shut by Iran since the US and Israel launched a war on it in late February. Oman and Iran have been in talks about new shipping routes through the waterway.
President Donald Trump has repeatedly threatened to attack Oman, a US ally and mediator in the conflict.
Iranians in Tehran respond to new US sanctions
People in Tehran are reacting to the US threatening to intensify economic pressure on Iran by widening sanctions.
Speaking to Iran’s West Asia News Agency (WANA), in the video above from Reuters, Iranian citizen Medhi Razaei said he believed the US’ main goal was “to create chaos, psychological pressure, put pressure on public opinion, and create fear and despair within our society.”
US Treasury Secretary Scott Bessent announced the planned measures yesterday as part of what he dubbed an “economic D-Day” against the Iranian regime. Iran’s finance minister told state media that Iran was “fully prepared” to counter the sanctions.
Trump's "economic D-Day" won't bring Iran to its knees, experts say
As the United States readies to further squeeze Iran economically, experts say that inflicting more pain on the Islamic Republic is unlikely to lead to the policy change Washington hopes for.
US President Donald Trump said he will launch “Operation Economic Outcast,” which he has dubbed as an “economic D-Day” amid a nearly six-month-long military conflict with Iran.
But with a high threshold for pain and some 47 years of various forms of international sanctions, Iran is likely to escalate as opposed to capitulate under Trump’s new measures, experts say.
Parsi said that this is the same miscalculation Trump made at the outset of the war, believing that increased pressure would lead to Tehran’s surrender.
It did not. And the D-Day sanctions are likely to have the same effect, Parsi wrote on X.
The new measures “are more likely to elicit Iranian counter-escalation and, as a result, turn out to be yet another round in this long-standing escalation cycle.”
Danny Citrinowicz, the former head of the Iran branch of Israeli military intelligence, said on X that the US went to war with Iran without sufficiently understanding the country it was confronting. He warned that recent economic measures may not lead to the desired outcome.
Trump says Iran faces "humanitarian crisis of epic proportions” as US pressures Tehran
President Donald Trump on Tuesday accused Iran of failing to pay large portions of its military while killing protesters, describing the situation as a “humanitarian crisis of epic proportions” as the US continues to pressure Tehran amid an ongoing war.
“The failing Islamic Republic of Iran is not paying large segments of their military, while at the same time killing protesters, even when they are not protesting, at levels not seen before,” Trump claimed in a Truth Social post.
“It is a humanitarian crisis of epic proportions, and must be stopped, NOW,” the president added.
While Trump did not provide evidence for his claims, an uprising in Iran was met with high-intensity violence in January 2026, while reports continue to highlight the severe risks facing dissidents.
Trump’s post comes as the US has intensified its economic pressure campaign against Iran, including the launch of “Operation Economic Outcast,” which Trump has dubbed as an “economic D-Day” amid a nearly six-month-long military conflict with Iran.
US Treasury Secretary Scott Bessent on Monday threatened new sanctions against countries that refuse to cut economic ties with Iran, though stopped short of announcing major new penalties.
Bessent suggests UAE decision to suspend trade with Iran was not a coincidence
United States Treasury Secretary Scott Bessent told Iran’s trading partners on Monday to cut economic ties with the country or face sanctions, suggesting that actions taken earlier by the United Arab Emirates were “not a (coincidence).”
“Actions that they (the UAE) took last week were not a (coincidence) but likely causal, and I would expect that we would see a broad array of countries taking similar actions as we continue our engagement,” Bessent told reporters.
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.
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.”
China, India, Turkey and Iraq are also at risk of US sanctions, with China being Iran’s largest trading partner and the leading purchaser of Iranian oil.
Anwar Gargash, adviser to the UAE president, said on Tuesday that the US-Iran conflict has moved “to a new phase” marked by “escalating economic pressure.” He added that the only way out of this war is not to target Gulf Arab states.
Iran has repeatedly targeted the UAE and other Gulf Arab nations throughout the conflict, saying they harbor US bases used to attack the Islamic Republic.
How new US sanctions against Tehran affect ordinary Iranians
The US Treasury has begun its new campaign to tighten sanctions against Iran with five targets: aviation, digital assets such as cryptocurrency, gold, shipping, and technology.
The goal: “to restrict the revenue that the Iranian regime uses to attack its neighbors, support terrorism abroad, brutally oppress its own people, and hold the global economy hostage.”
Even though the designations target the regime, ordinary Iranians will inevitably be affected. The measures are designed to choke off the ability of the regime to generate revenue and hard currency.
Less access to foreign currency will put further pressure on the beleaguered Iranian currency – the rial – and lead to higher import costs and even higher inflation.
Crypto-channels have helped Iran make money from oil exports. One individual sanctioned on Monday, a Ukrainian named Ivan Obukhov who is based in the United Arab Emirates, “has processed over $100 million of cryptocurrency payments to facilitate oil sales” for the Islamic Revolutionary Guard Corps (IRGC) since 2023, according to the US government.
But ordinary Iranians also turn to cryptocurrency as a way to opt out of a failing system. Iran’s crypto eco-system was worth $7.78 billion in 2025, according to blockchain data platform Chainanalysis.
The US campaign does not automatically blacklist every Iranian crypto company.
The Treasury said Monday that “as Iran’s formal financial sector collapses, the regime is increasingly attempting to stabilize the rial with gold to hedge against rampant inflation.”
Removing access would likely further ravage the spending power of ordinary Iranians.
Another measure that will impact ordinary Iranians: the Treasury suspended several licenses that had authorized certain remittance payments to Iran. This makes it more difficult for the huge Iranian diaspora to send money to relatives, forcing them to use third-country intermediaries and crypto or stable-coins.
Iranian media reports long lines and temporary closures at gas stations in Tehran
Drivers in the Iranian capital of Tehran are experiencing long lines at gas stations and temporary fuel shortages, according to Iranian news agencies, although authorities have insisted the overall fuel supply chain remains stable.
It comes as US strikes on Iranian oil storage infrastructure, the US blockade and fears of rising inflation are believed to be triggering fuel shortages and subsequent rushes on gas stations.
Iranian news agency Rokna reported that people in Tehran said some petrol stations had no gas available, forcing them to temporarily close, while other stations had long lines on Monday and Tuesday.
Tabnak, another news agency, published a similar report on Monday, saying it received comments from readers who were experiencing restricted fuel availability in eastern and southern Tehran.
Social media users in Tehran also reported gas stations without petrol in more urban, northern neighborhoods. And outside of the capital, reports of diesel and gas shortages in Mazandaran province and Fars province have emerged on social media. CNN is unable to independently verify those reports.
The National Iranian Oil Products Distribution Company (NIOPDC) has said the country’s fuel supply chain remains stable, and the shortages and long lines are being caused by rumors that lead to panic buying, as well as delays in fuel deliveries. The distribution company said the issue “should be resolved within the next few days,” according to Rokna.
The Tehran region director of the NIOPDC also said that damage inflicted on Tehran’s petroleum product storage and distribution infrastructure during the war has created some constraints on fuel distribution.
Iranian workers’ real base wage has more than halved over the past decade
Iranian workers have seen their base wage more than halve in the last decade, plunging from $232 to $83 per month in real terms, as sanctions, crises and war have squeezed Iran’s economy, according to state-affiliated media.
Iran’s currency – the rial – is incredibly weak and dropped to a record low of two million against the US dollar yesterday. That means the base wage of 16.625 million tomans amounts to just $83, said the Iranian Labour News Agency (ILNA), using the toman unit which is equal to 10 rials.
This marks “an exceptionally steep and unprecedented decline,” ILNA said. It is also well below the globally recognized $10 a day benchmark, below which international organizations classify people as living on low-incomes and at risk of hunger.
Even though wages have risen during this time, because so many consumer goods are imported at dollar-dominated prices, workers’ “real wages” have fallen, ILNA said.
“The clearest evidence can be seen on working families’ dinner tables. Ten years ago, we used to buy several kilograms of red meat every month. Now, months go by without us seeing any meat on our tables,” he told ILNA.
ILNA’s assessment comes as a reminder of the decade-long economic crisis in Iran, and the severity of the sanctions the US has already imposed on the regime.
Oil prices dip as traders await clarity on "economic D-Day" measures
Global oil prices dipped on Tuesday despite the United States threatening “economic D-Day” on nations doing business with Iran as traders wait for more concrete details.
Brent futures, the global benchmark, declined 2% to trade at $90 a barrel just before 5 a.m. ET. Meanwhile, WTI futures, the US benchmark, dropped 2.4% to $83 around the same time.
The dips came even after US Treasury Secretary Scott Bessent announced fresh economic sanctions against Iran and its trading partners on Monday. Shipping firms also risk penalties if they respond to demands for information from Iranian organizations managing the Strait of Hormuz.
But the US administration has not yet imposed any sanctions and it has neither named affected countries nor provided a specific timeline. Brent and WTI both closed down 2.4% on Monday.
“There were no concrete new steps other than sanctioning 60 Iran-linked entities and individuals,” Deutsche Bank analysts wrote in a Tuesday note.
“In the absence of material escalation and amid continuing grey flows through the Strait of Hormuz, oil markets remained mostly in a wait-and-see mode,” they added.
Some analysts have theorized that meaningful amounts of crude oil are “leaking” out of the Strait of Hormuz, helping to prop up the global market. These tankers may be turning off their tracking signals to avoid detection, experts told CNN.
Matt Egan contributed reporting.
China says its cooperation with Iran should not be disrupted, new sanctions will "intensify tensions"
Beijing on Tuesday warned new US economic sanctions on Iran “will only further intensify tensions” and that China’s cooperation with Iran should not be disrupted.
“Economic warfare and maximum pressure will not help resolve the issue. They will only further intensify tensions and conflicts, create spillover risks…” said China’s foreign ministry spokesperson Lin Jian during a regular press briefing.
“China’s cooperation with Iran has always been conducted within the framework of international law and should not be disrupted or undermined.”
Lin added: “China is closely following relevant developments and will take all necessary measures to firmly safeguard its own rights and interests.”
US Treasury Secretary Scott Bessent on Monday vowed an “economic D-Day” for countries that buy oil from Iran.
Tehran likely shipped $3.9 and $4.2 billion worth of oil in September 2025, one analysis found; China, the world’s largest energy consumer, buys the vast majority.
Thirty-eight percent of China’s oil and 23% of its liquified natural gas transits through the Strait of Hormuz, a focal point of the Iran war, according to a Nomura report in April.
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.
Shipping firms now risk penalties for even responding to information demands from organizations Iran has set up to manage the Strait of Hormuz.
Washington’s new measure will also impact people in the US who send money to family members who live in Iran.
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.
- Bessent declined to say whether the US is willing to target Chinese banks with sanctions.
- 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 Interior Minister Mohsin Naqvi said he and army chief Asim Munir had a “very positive and productive meeting” with Iranian President Masoud Pezeshkian and that “significant progress” was made in talks about the conflict.
- 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.
- 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.
The US is threatening sanctions on nations doing business with Iran. Who is buying Iran oil?
US Treasury Secretary Scott Bessent on Monday vowed an “economic D-Day” for countries that buy oil from Iran. Experts say that means one country in particular: China.
Bessent didn’t name China on Monday, but he left little room for doubt.
“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,” Bessent said on Monday. “We know who they are. They know who they are.”
But while Bessent’s threat could put China front and center, the repercussions could reach across the world – even for American consumers, who could find their own energy costs rising as a result.
Read more: The US says it’ll crack down on countries doing business with Iran. Who’s buying Iranian oil?
New US measures to impact people sending money to family in Iran
Washington’s new measures to put economic pressure on Iran will impact people in the US who send money to family members who live in Iran.
The US Treasury has suspended a longstanding mechanism that has allowed for personal remittances to and from Iran, according to a document published late Monday.
Iran has been heavily sanctioned by Washington for decades but a general license carve-out has allowed for noncommercial, personal remittances to Iran via a specific procedure involving third-country brokers.
With that general license now suspended, people wishing to make such transactions would need to apply for a specific license from the Office of Foreign Assets Control, according to the Treasury notice.
US suspends sports matches and academic exchanges with Iran
The United States has indefinitely suspended all amateur and professional sports activities and academic exchanges with Iran, according to a statement Monday by the Office of Foreign Assets Control.
Tensions between the US and Iran had already spilled over to the sporting arena before the suspension.
Iran’s soccer team faced extensive hurdles during the 2026 World Cup, which was co-hosted by the US. The team was forced to move its training base from Arizona to in Tijuana, Mexico, at the last minute, and faced restrictions on how long it was able to stay in the US before and after games.
