WASHINGTON, Aug. 16, 2026 — U.S. President Donald Trump is preparing to intensify economic pressure on Iran, with the administration considering tougher sanctions against oil buyers, financial institutions and other entities helping Tehran generate revenue, as Washington seeks to tighten its campaign against Iran.
Trump vowed on Friday to hit Iran hard economically, a day after Treasury Secretary Scott Bessent said the United States would impose measures against Tehran that have “never been seen” as soon as next week, Reuters reported.
The United States has already imposed extensive sanctions on Iran since Trump returned to office for a second term. According to data from the U.S. Treasury Department’s Office of Foreign Assets Control, Washington has sanctioned more than 1,000 people, vessels and aircraft during Trump’s second term. Recent measures have targeted Iran’s shadow oil fleet, shipping insurers, weapons procurement networks and digital exchanges.
One option under consideration is imposing secondary sanctions on Chinese independent refineries, commonly known as “teapots,” that purchase Iranian oil. China accounted for more than 80% of Iran’s shipped oil in 2025, according to data from analytics firm Kpler cited by Reuters, making Chinese buyers a critical part of Tehran’s oil trade.
Washington could also target larger Chinese banks that process transactions linked to Iranian oil. U.S. officials have already warned two larger Chinese banks that they could face secondary sanctions if Iranian funds are found moving through their systems, although the institutions have not been publicly identified.
Such a move could significantly increase pressure on Iran, but it also risks provoking retaliation from Beijing at a time when Washington and China are attempting to manage tensions over trade and other strategic issues. U.S. officials are particularly concerned about China’s role in supplying critical minerals needed for advanced technology manufacturing.
Another possibility is for Washington to continue targeting individuals and companies involved in helping Iran evade sanctions. Reuters quoted sanctions experts as describing this approach as a “whack-a-mole” strategy because Tehran can establish new companies and financial channels after existing ones are sanctioned.
Additional aviation sanctions are also being considered. These could further restrict Iran’s ability to move goods and conduct international trade, particularly as the United States maintains a naval blockade affecting shipping through the Strait of Hormuz.
More sweeping proposals include a land blockade aimed at restricting Iran’s access to imports through its neighboring countries. Such a measure would require cooperation from Iraq, Turkey, Pakistan, Afghanistan, Turkmenistan, Azerbaijan and Armenia and would be considerably more difficult to implement. Experts also warn that restricting food, energy and textile imports could increase pressure on ordinary Iranians without necessarily producing the political response Washington seeks.
The administration could also seek to impose secondary tariffs on countries that continue doing business with Iran. Trump has repeatedly threatened such measures, although the U.S. Supreme Court has struck down the legal basis for some of his tariff actions. A sanctions bill recently passed by the Senate includes new Iran-related sanctions and could give Trump additional tariff powers, but the legislation still needs approval from the House of Representatives.
The proposed measures come against the backdrop of decades of U.S. sanctions on Iran over its nuclear program, alleged human rights violations and support for militant groups. Since the war involving Iran began in February, Washington has added maritime, energy and financial sanctions and launched a naval blockade.
The economic pressure also carries broader international risks. Any prolonged disruption to Iran’s oil exports or shipping through the Strait of Hormuz could affect global energy markets, particularly because the waterway is a major route for oil shipments to Asian markets.
For the Trump administration, the challenge is to increase pressure on Tehran without triggering wider economic disruption or a confrontation with major trading partners such as China. The next round of U.S. measures, expected as early as next week, could provide a clearer indication of how far Washington is prepared to go in its effort to weaken Iran economically.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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