Here's the latest
• “Economic D-Day”: 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. Shipping firms now risk penalties for even responding to information demands from organizations Iran has set up to manage the Strait of Hormuz.
• Under pressure: Washington’s new measures on Iran will impact people in the US who send money to family members who live in Iran. All amateur and professional sports activities and academic exchanges with Iran have been suspended as well.
• Defiant Iran: Finance Minister Ali Madanizadeh said Tehran is “fully prepared” to counter sanctions while top negotiator Mohammad Bagher Ghalibaf brushed off the US sanction threats.
• Who is buying Iranian oil?: The US has threatened to punish nations that buy oil from Iran. Experts say that means one country in particular: China.
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.
Shipping firms risk sanctions for even responding to Iranian demands, US warns
Mariners and shipping firms now risk sanctions or penalties if they respond to information demands from organizations Iran has set up to manage the Strait of Hormuz, the US government has warned.
The Office of Foreign Assets Control (OFAC) had previously said that anyone who paid tolls to Iran for passage of the critical waterway would risk being caught by sanctions, but according to a new notice posted late Monday that risk now applies even to those “responding to information demands … even if there is no associated payment.”
It applies to dealings with Persian Gulf Strait Authority (PGSA), Persian Gulf Marine Insurance Company (PGMIC) and HormuzSafe Marine Services Authority (Hormuz Safe) –– three organizations set up this year by an Iranian regime determined to push its claimed right to control the strait.
In recent months, Iran has repeatedly attacked ships that it said had not liaised with the its Hormuz organizations.
The OFAC alert was published on what Washington dubbed ‘economic D-Day,’ as it ramped up its maximum pressure campaign on Tehran.
Pakistan's interior minister says "significant progress" made during talks with Iran president
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.
“Our discussion focused on the Iran US conflict, tensions in the Middle East and the way forward, as well as the steps needed by both sides for restoration of the Islamabad MoU (memorandum of understanding) thereby leading to comprehensive settlement of the conflict,” Naqvi wrote on X on Tuesday.
“The Iranian President candidly shared his Government’s perspective and concerns, and we had a very constructive exchange on the issues involved,” he said, noting the meeting ended positively.
On Monday, Iran’s state-run Islamic Republic of Iran Broadcasting (IRIB) reported Mohammad Bagher Ghalibaf, Iran’s parliament speaker and head negotiator, criticized Washington for failing to uphold its commitments in a meeting with Munir.
Ghalibaf, IRIB reported, said Tehran remains committed to implementing MoU but that the US must honor its commitments as well.
Japan vows support for US-sanctioned ICC head amid claims of weak response
The Japanese government said it will continue to support International Criminal Court President Tomoko Akane, sanctioned last week by the US, following criticism from rights groups that Tokyo’s response had been weak.
“Japan has consistently supported the ICC, a permanent International Criminal Court, in order to punish and eradicate the most serious crimes in the international community and to ensure the thorough implementation of the rule of law,” Japan’s Chief Cabinet Secretary Minoru Kihara said Monday in response to repeated questions from reporters.
“We have maintained close communication with Director Akane and we intend to continue providing the necessary support,” Kihara added.
Akane, the first Japanese to lead the Court, and Senegal’s Abdoulaye Seye, an ICC senior trial lawyer, were sanctioned by the US last week as part of the Trump administration’s broader campaign against the Hague-based Court, which it has called corrupt and politicized.
In a statement last week, US Secretary of State Marco Rubio said Akane and Seye had “directly engaged in efforts by the ICC to investigate, arrest, detain, or prosecute officials whose government has not consented to ICC jurisdiction.”
Japanese Prime Minister Sanae Takaichi, who has developed a close relationship with Trump, has faced backlash for merely expressing regret and refraining from criticizing the US.
The US has never signed the Rome Statute, the treaty which established the ICC, which prosecutes the world’s most egregious crimes, including genocide.
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.
“Apparently, (the US) have now decided to try another failure. We have long been expecting these days and were well aware of the plans they had. The government has a two-year plan and is fully prepared, and has been prepared, for these developments,” Madanizadeh said.
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.
Netanyahu praises Trump and Bessent's sanction 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.
Here’s who could be impacted if the US follows through on sanction threats
US Treasury Secretary Scott Bessent has 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.
“China, by far, is the most impactful one if you really wanted to make a dent in Iran’s ability to continue to finance their activities,” said Daniel Tannebaum, a nonresident senior fellow at the Atlantic Council.
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.
