Bessent vows economic D-Day as Iran rial hits record low
US Treasury Secretary Scott Bessent warned that an “economic D-Day” is coming for Iran, pairing new sanctions threats with pressure on countries still tied to Tehran. Iran’s rial hit a record low as Bessent vowed to cut facilitators of Iranian finance from the US dollar system.
Key Takeaways
- Bessent framed Monday’s push as an “economic D-Day,” after a Sunday Financial Times op-ed and a Treasury news conference.
- Iran’s market rial fell to about 2.02 million per dollar, a record low, as food prices and GDP outlook worsened.
- Washington expanded Iran-related sanction categories to digital assets, technology, and shipping, while holding off on the largest new penalties.
- Bessent said any entity facilitating Iran-linked money laundering risks removal from the US dollar system, with a major action expected this week.
What did Bessent announce about Iran?
Bessent told reporters that entities helping Iran launder money or turn oil into cash “will be removed from the US dollar system,” saying “the clock just started ticking.” He added that a major sanctions announcement targeting an unspecified financial institution should come by week’s end.
The Treasury also said it expanded categories of “Iran-related conduct” that may draw penalties, covering digital assets, technology, and shipping sectors officials say Iran has used to prop up its economy. Secondary pressure on countries still doing business with Tehran is part of the plan, after the UAE said it was suspending all trade with Iran.
CNN reported that despite the D-Day rhetoric, the US stopped short of imposing the biggest new penalties Monday, preferring “quiet diplomacy” while setting expectations and timelines for partners.
Why does the rial’s collapse matter now?
As trading opened Monday, Iran’s currency dropped to 2.02 million rial per US dollar on the market rate most Iranians pay, versus an official Central Bank rate near 1.5 million, PBS NewsHour reported via the Associated Press.
Since the US and Israel attacked Iran on Feb. 28, rice prices have risen roughly 60% and beef more than 150%. The IMF forecasts GDP will contract more than 5%. President Donald Trump posted that “IRAN IS COMPLETELY COLLAPSING!!!” ahead of the announcement.
Bessent wrote in the FT that Trump had “decimated Iran’s economy to a point where the rial has never been weaker and inflation has rarely been higher.” Economic pain has not yet translated into clear political pressure on the regime, AP noted.
Can sanctions force a breakthrough over Hormuz?
Nearly six months of war have left the fight centered on who controls the Strait of Hormuz, through which about a fifth of the world’s traded oil moved before the conflict. Iran has kept traffic near a halt and refuses a full reopening unless it can charge ships.
Iran and Oman are reportedly near a joint management plan for the waterway; Oman’s foreign minister was set to visit Iran on Tuesday. Pakistan sent a high-level delegation Monday to discuss ending the war. Iranian Foreign Ministry spokesperson Esmail Baghaei warned that escalation would bring “consequences,” adding, “Our hands are not tied.”
Bessent declined firm timelines for countries to cut ties, saying Trump has been calling leaders and that non-compliance would bring “ramifications.” Pressed on China—long a top buyer of Iranian oil—he said “no one is above the reach of US sanctions,” while favoring quiet diplomacy first.