US To Impose New Sanctions On Iran Every Week, Banks To Be First Target

Washington: America is now preparing to take another big step to increase pressure on Iran. US Treasury Secretary Scott Besant said on Sunday that sanctions could be imposed on another bank this week as part of a crackdown on transactions linked to Iran. He indicated that the US was planning to impose new sanctions on financial networks linked to Iran every week, starting with banks.

Why is America imposing new sanctions on Iran?

Scott Besant outlined the US strategy in an interview with The Associated Press ahead of the G20 meetings in Asheville, North Carolina. He said that America is increasing financial pressure to isolate Iran economically.

According to Besant, the US can also take action against institutions and countries that continue doing business with Iran. He clearly indicated that if necessary, the US administration will further expand the scope of financial sanctions.

Will America take action against allied countries also?

The US recently announced the launch of a new campaign to increase pressure on countries doing business with Iran. Scott Besant said that such countries will either have to end their financial relations with Iran or they may have to face retaliatory action from the US.

The US Treasury Department also took the first official action under this campaign on Friday. If the proposed new rule is fully implemented, the UAE branches of Egypt-based Bank of Egypt, the world's second largest bank after Russia, could lose access to the US financial system.

What is America's stance on China and India?

China and India are also major trading partners with Iran. For this reason, American sanctions may affect these two countries also.

Besant will meet officials of China and India this week. However, he said that he will have talks with his Chinese counterparts during the G20 meeting and all options are open for Beijing on the issue of continuously purchasing oil from Iran.

Will economic pressure on Iran increase every week?

The US Treasury Secretary has indicated that the sanctions campaign against Iran will not be limited to a one-time action. He says that America can move towards imposing new secondary sanctions related to Iran every week.

Its aim is to limit Iran's financial activities and international trade. In such a situation, the risk of American action against banks and companies doing business with Iran may increase in the coming days.

What will be the impact of US-Iran tension on business?

Due to further tightening of US sanctions, difficulties may increase for companies and financial institutions doing business with Iran. Especially it is likely to have an impact on the oil business and the international payment system.

At the same time, Besant's talks with officials of India and China will also be monitored. Both these countries have important trade relations with Iran and the further stance of the US sanctions policy could also be important for the global energy market.