President Donald Trump's administration plans to impose sanctions on another bank this week as it intensified efforts to economically isolate Iran, U.S. Treasury Secretary Scott Bessent told The Associated Press on Sunday. Bessent spoke with the AP ahead of Group of 20 meetings in Asheville, North Carolina, where he will meet individually with his counterparts from the world's major and developing economies to encourage cooperation against Iran.
The announcement comes as a war between the U.S. and Iran recently reached the six-month mark. The Trump administration has signaled it would shift from military strikes to economic pressure, promising what it called an 'economic D-Day' against a country that has already weathered decades of punishing sanctions. However, hostilities flared again on Sunday when U.S. forces struck Iranian rocket launchers near the Strait of Hormuz in their first military action in a month, breaking a lull in fighting; Iran vowed to retaliate.
What the Right Is Saying
Republican lawmakers praised the administration for following through on its commitment to maximum economic pressure. Senator Bill Hagerty of Tennessee said Bessent's approach 'sends a clear message to Tehran that we are serious about denying them the resources to fund terrorism and develop nuclear weapons.' He added that previous administrations' incremental sanctions 'only gave Iran room to maneuver.'
Conservative commentators have been more skeptical, arguing the administration should pair economic measures with continued military deterrence. The Heritage Foundation argued in an analysis that sanctions alone 'will not convince the Iranian regime to abandon its nuclear ambitions' and called for maintaining a credible military threat. Senator Tom Cotton of Arkansas has pushed for secondary sanctions on any country or entity doing business with sanctioned Iranian entities, arguing previous administrations were too hesitant to use them.
What the Left Is Saying
Senate Democrats have largely supported the administration's focus on economic pressure over direct military confrontation. Senator Chris Van Hollen of Maryland said the sanctions strategy 'represents a more sustainable approach' than kinetic options that could escalate into broader conflict. 'Economic tools can be sustained over time without putting American troops in harm's way,' he said.
Progressive advocacy groups have offered cautious support for the shift toward financial measures. The Center for Strategic and International Studies noted that past maximum pressure campaigns against Iran achieved some success in constraining Tehran's revenue streams, though critics argue they failed to change Iranian behavior on nuclear negotiations. Human rights organizations have called for any sanctions regime to include humanitarian exemptions to avoid punishing ordinary Iranians.
What the Numbers Show
Treasury's first official action in this campaign was a proposed rulemaking on Friday that would sever the Emirati branches of Banque Misr, Egypt's second-largest bank, from access to the U.S. financial system if finalized. The administration has mostly relied on warnings rather than imposing immediate sanctions against Iran's trading partners.
China remains Iran's largest trading partner and leading buyer of its oil. According to energy analytics firm Kpler, China imported approximately 90 percent of Iran's crude exports in recent months despite existing sanctions. Treasury Secretary Bessent said 'all options are on the table' regarding potential sanctions on Beijing for continued purchases, though he rejected characterization of the administration as reluctant to confront China.
The Bottom Line
The announcement signals an escalation of economic pressure after six months of mixed military and financial approaches. What happens at this week's G20 meetings could determine whether the strategy gains international support or remains largely a U.S.-only effort. Watch for whether any major trading partners commit to reducing Iran trade, particularly China, which handles most of Iran's oil exports. The proposed rulemaking against Banque Misr faces a public comment period before taking effect, giving Egypt time to press its case against secondary sanctions on its banking sector.