The Albany Gazette - Iranians queue for petrol after US announces new sanctions

Washington has turned to pulling economic levers six months into a war on Iran that has ground to a stalemate militarily, with peace talks stalled and most traffic through the crucial Strait of Hormuz blocked.

US Treasury Secretary Scott Bessent on Monday laid out plans for the "economic asphyxiation" of Iran, saying the "objective is to sever every economic lifeline that sustains this tyrannical regime".

Though Iran's leaders have shrugged off the tough talk, having already endured sanctions for decades, some residents of the capital feared that they would feel the pinch.

"Naturally, sanctions affect people's lives. People are being hurt, both those who are financially well-off and those who are financially weak," said realtor Mehdi Yazdian, 55, who urged the authorities to control prices.

"Yes, these sanctions are having an effect, but naturally, our people are resilient. These sanctions have been in place for 47 years."

Iran had already been grappling with sky-high inflation before the war, which fuelled an anti-government protest movement that peaked in January.

Authorities met the movement with a crackdown that foreign rights groups said killed thousands of people.

The government has attributed the violence to "terrorist acts" orchestrated by the United States and Israel.

English teacher Kia Farahani, 45, said similar unrest could lie ahead.

"I personally am not afraid of war at all because this is our land," he said.

"But I think that this war will be more economic and will cause people to feel a lot of pressure, and now maybe there will be protests again."

Iran has carried out a spate of executions related to the winter protests, drawing outrage from US President Donald Trump on Tuesday.

"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," he wrote on Truth Social.

"It is a humanitarian crisis of epic proportions, and must be stopped, NOW."

- 'Another defeat' -

Announcing the new sanctions, Bessent said countries that did not support the US economic campaign would "share in the isolation" of Iran, adding Trump was making phone calls to world leaders asking that they halt interactions with Tehran.

The Treasury Department said expanded secondary sanctions would target Iran's digital assets and its technology, gold, aviation and shipping sectors.

It also issued new sanctions against 60 individuals, companies and vessels that allegedly aid Iran in oil revenue generation, weapons procurement and cyber operations.

The sanctions hit entities around the world, including in the United Arab Emirates, Hong Kong, China, Singapore and in Europe.

China, a key customer for Iranian oil, said Tuesday that it opposed the sanctions and vowed to "take all necessary measures to firmly safeguard its own rights and interests".

Bessent did not rule out the possibility of Chinese banks being targeted, and vowed that any entity "that facilitates money laundering on behalf of Iran will be removed from the US dollar system".

Iran, however, was dismissive of the threat and predicted "another defeat" for Washington.

"We've been waiting for these plans for a long time, and the government is and was ready and has a two-year plan to manage these events," said Economy Minister Ali Madanizadeh.

Oil prices slipped for a second day on Tuesday as traders judged the sanctions to have reduced the risk of renewed military strikes, with prices falling around three percent and the international benchmark Brent back below $90 a barrel.

Iran has weathered sanctions for decades, using complex international financial networks to evade restrictions.

Saeed Laylaz, Tehran-based economic expert, told AFP that the new US measures were of a piece with Trump's so-called "maximum pressure" approach, which he has pursued for years.

"In general, the United States of America has nothing that it can do that had not done before," Laylaz said, noting years of isolation had made Iran's economy largely self-sufficient.

"But I have doubts about the internal governance of the Iranian economy and whether the government is fully capable or prepared to deal with Iran's internal issues, including, for example, fighting corruption, fighting bank imbalances, fighting inflation, (and enacting) timely financial, monetary and economic policies."

(T.Wright--TAG)