New US Sanctions on Iran Send Shockwaves Through Global Markets

The administration of US President Donald Trump on August 24 announced new economic sanctions against Tehran, calling them a "total economic war" as the conflict between the US and Iran approaches six months. US Treasury Secretary Scott Bessent stated that the measures target Iran's main revenue sources, including the oil and gas sector, and called on countries worldwide to cut economic ties with Tehran.

According to the US Treasury, the new sanctions target Iran's aviation, digital assets, gold, technology, and maritime shipping sectors, along with sanctions on 60 specific individuals and vessels. The measures also expand the scope of secondary sanctions against Tehran's trading partners, including ships based or linked to Singapore, China, and Hong Kong.

Additionally, Washington has indefinitely suspended certain exemptions to existing sanctions, including academic exchanges, personal remittances, and some sporting activities. Organizations engaged in these activities have until September 8 to cease operations.

Analysts note that the new measures are escalating but primarily aimed at pressuring Iran's remaining trading partners to sever ties, particularly in gray-area trade. The US Treasury accuses Iran of using cryptocurrency to evade sanctions and facilitate transactions linked to the Islamic Revolutionary Guard Corps (IRGC), as well as using gold to support the value of its national currency.

The maritime sanctions target the state-linked shipping fleet of Iran, accused of transporting oil and "sensitive weapons components." The technology sanctions restrict Iran's purchase of materials that could be used in weapons programs, while the aviation sanctions target Iranian airlines accused of transporting weapons, military personnel, and financial resources to proxy forces.

This is the latest round in the US's long-running sanctions campaign against Iran dating back to 1979. In February 2025, the US Treasury sanctioned 30 individuals and vessels linked to Iran's oil trade. By December 2025, Washington sanctioned 29 vessels allegedly part of the "shadow fleet" shipping Iranian oil. In April 2026, the US added two dozen individuals, companies, and vessels in the network of Mohammad Hossein Shamkhani, son of late senior Iranian security official Ali Shamkhani, while also tightening measures on regime-linked cryptocurrency.

Pressure on Iran's oil market, from both sanctions and the ongoing conflict, has tightened global oil supply and affected countries buying Iranian oil. China is the main destination for Iranian oil, purchasing about 90% of its crude exports, or 1.4 million barrels per day in 2025. Asian markets, including China, also heavily depend on oil shipped through the Strait of Hormuz, where about one-fifth of global oil passed before Iran blocked the route.

This pressure has pushed benchmark crude prices higher, driving up fuel and food costs. For US consumers, the average gasoline price has risen to $4.09 per gallon (3.78 liters), up from $2.98 on February 28 when the US and Israel began strikes on Iran. Experts warn that if Iran retaliates strongly, Americans could soon feel the impact through gasoline prices, airline tickets, and shipping costs.

In financial markets, gold rose 0.8% to $4,639.49 per ounce in mid-day trading, the highest since mid-May. Brent oil fell more than 2% to $85.22 per barrel. The Nasdaq fell 0.5%, the S&P 500 fell 0.2%, while the Dow Jones rose 0.2% from the open. Major oil company stocks also dropped, with Chevron down 0.8%, ExxonMobil down 0.9%, BP down more than 2%, and Shell down 0.2%.

The economy and the Iran issue are emerging as key topics ahead of the US midterm elections. Polls show only about one-third of Americans support the war, and just 28% approve of President Trump's handling of Iran. Meanwhile, Democrats hold a narrow edge over Republicans in voter trust on handling the economy, for the first time in about a decade.