US Treasury to Announce New Sanctions on Iran Amid Economic Collapse and Stalled Talks

US Treasury Secretary Steven Mnuchin is set to unveil new measures on Monday aimed at further isolating Iran's economy. These steps, described as the "largest economic attack ever," seek to pressure the Iranian regime into concessions in stalled negotiations to end the ongoing conflict. The new sanctions will complement an existing naval blockade of Iranian ports and reportedly include threats of secondary sanctions against countries continuing to provide economic lifelines to Iran, such as China. However, it remains uncertain if President Donald Trump will impose sanctions on close Iranian allies, given the risk of renewed trade tensions ahead of Chinese President Xi Jinping's planned visit to Washington next month.

Details of the sanctions are expected to be disclosed during a press conference around 20:00 Israel time, with reports indicating an expansion of secondary sanctions targeting entities that violate restrictions on dealings with Iran. US officials have mapped Iran's oil smuggling networks and will present this intelligence to countries aiding Iran's sanctions evasion as a final warning. Trump has shifted strategy recently from direct military confrontation to a crippling economic siege, threatening a "D-Day economic" offensive and punishing nations maintaining trade ties with Iran. So far, only the United Arab Emirates has officially severed trade relations with Tehran.

Iran's economy is already in dire straits, described as a "survival economy" coping with decades of sanctions and worsened by recent wars. The IMF projects inflation near 70% this year, with food prices, such as meat, soaring by 150%. The economy is expected to contract by 5.4%, unemployment has surged with over a million job losses since February, and the Iranian rial has plummeted to a historic low of over 2 million per US dollar. Ahead of the announcement, Trump posted on Truth Social that "Iran is collapsing completely!"

Iranian citizens report severe hardships obtaining basic food, with many sacrificing essentials and working long hours just to survive. While regime officials acknowledge the crisis, they vow not to yield and threaten retaliation against countries cooperating with the US-led economic blockade. Mohsen Rezaei, Secretary of Iran's Supreme National Security Council, warned that continued economic warfare would lead to a shutdown of oil exports from the Persian Gulf and Strait of Hormuz and promised forceful responses to aggressive US actions or allied cooperation.

Meanwhile, diplomatic efforts continue to prevent escalation. A senior Pakistani delegation led by Army Chief Asim Munir departed for Tehran, with Munir playing a key mediation role praised by Trump. Al Jazeera reported that Trump recently urged Munir to leverage Pakistan's influence to revive negotiations with Iran.