US Tightens Economic Grip on Iran Through Sanctions and Blockades

The United States is intensifying its economic pressure on Iran through a strategy of "economic isolation," as stated by U.S. Treasury Secretary Scott Bessent. Bessent announced that Iran would not have any "floating oil" this week and would not profit from oil sales for the first time in its history. These measures, which began in August, aim to prevent Iran from evading sanctions through third countries. Washington has imposed sanctions on approximately 60 entities in Hong Kong, China, Malaysia, the UAE, Singapore, and other nations. These companies allegedly created "shell companies" to conceal Iran's involvement in transactions.

Furthermore, the U.S. Navy has maintained a naval blockade on Iranian ports since April, with Iran reportedly losing around $300 million daily due to its inability to export oil by sea. The U.S. Treasury has also targeted foreign banks facilitating Iran's financial transactions, sanctioning Turkey's Golden Global Bank and its branches in September. Any entity assisting Iran in evading sanctions or money laundering risks being cut off from the U.S. financial system.

In parallel, the U.S. Treasury recently imposed sectoral sanctions on Iran's railway and automotive industries. This move targets Iran's shift to rail transport for oil and regional trade following the naval blockade. These actions have contributed to a record low for the Iranian rial, which has lost 80% of its value since early 2026, trading at approximately 2.7 million rials to the U.S. dollar.

Despite these measures, the U.S. economic pressure faces challenges. The number of cargo trains from China to Tehran has increased since the naval blockade began, passing through sovereign nations like Kazakhstan and Turkmenistan, making them harder for the U.S. to disrupt than Gulf routes. However, this land route cannot compensate for the volume of oil Iran previously exported by sea.

China, Iran's largest oil buyer and trading partner, remains a critical factor. While the U.S. has warned that no country is exempt, sanctions have primarily targeted smaller intermediary and shell companies, not major Chinese state-owned enterprises or banks, due to potential diplomatic costs. Small Chinese banks not requiring U.S. dollars and barter deals that bypass the banking system also present loopholes.

The article notes that economic hardship does not automatically translate into political concessions, as a popular uprising anticipated by Washington has not materialized. Tehran is reportedly banking on time, with oil prices nearing $100 per barrel and U.S. midterm elections approaching. The Revolutionary Guard has also reportedly sent an open letter to American voters urging them to reject President Trump. The race is seen as a countdown between the collapse of Iran's economy and the exhaustion of American voters' patience.

While economic measures are being employed, the military option remains on the table. The Pentagon is preparing to send a third aircraft carrier and up to 10,000 troops to the region by late November. President Trump suggested that any potential conflict would likely end shortly after the elections. The U.S. strategy involves economic strangulation now, with a threat of force later. For Israel, a partner in this strategy, the concern is that a deal could be brokered in Washington and Doha, potentially impacting Israel's interests as it heads into elections on October 27.