US Treasury Secretary Scott Bessent said the United States is ending its management of the Iranian threat. He announced that all economic ties with Iran will be cut and that any country conducting financial business with Iran will be isolated. The Treasury Department said it has identified networks used by Iran to evade sanctions and has imposed sanctions on nearly 60 entities, individuals and vessels. It designated five sectors – digital assets, technology, gold, aviation and shipping – for sanctions.

Iranian Economy Minister Ali Madanizadeh said Iran is fully prepared for the sanctions and has a two‑year plan to manage them. He said the government has its own tools and knows how to respond. Madanizadeh added that China and Russia have not accepted the US measures and that other countries are likely to resist them. The Chinese Foreign Ministry said sanctions and pressure tactics are ineffective and that Beijing will protect its interests.

The announcement follows a US declaration of an economic emergency and comes after former President Trump said a whole civilization would die unless Iran agreed to a deal. Mediator Pakistan has called for diplomatic efforts.

The Iranian regime warned that it could halt all oil exports from the region if the conflict continues. The Strait of Hormuz, through which about one‑fifth of global oil passes, has been effectively blocked since the conflict began at the end of February.

Bessent said the sanctions aim to restrict revenue for the Islamic Revolutionary Guard Corps and the Iranian regime. He warned that entities assisting Iran cannot claim ignorance. He added that President Trump will contact world leaders to request they stop interacting with the regime.

Analyst David Oxley of Capital Economics said the new sanctions package may have limited short‑term impact on Iranian oil flows because most of Iran's oil is sold to China, which does not recognize US sanctions.

Higher oil prices have increased living costs, with US gasoline prices exceeding $4 per gallon and concerns about affordability ahead of the November mid‑term elections. Brent crude traded at $92 per barrel on Monday.

The US Treasury said it will intervene in the bond market by purchasing government debt to boost demand and lower borrowing rates. The sanctions are part of a broader effort to end the conflict that began after the United States withdrew from the 2018 nuclear agreement and reimposed sanctions.