US secondary sanctions on Iran: How they work and who is affected

The United States has announced new sanctions targeting at least 60 entities across the Middle East, Asia, and Europe, threatening secondary sanctions against countries trading with Iran to sever Tehran's economic lifelines amid the ongoing conflict. The campaign, called "Operation Economic Outcast," follows "Operation Economic Fury" and targets all Iranian revenue sources, including oil. Treasury Secretary Scott Bessent warned that countries facilitating Iranian transactions face penalties, though he said the US is giving partners "the opportunity to remedy bad behaviour." Secondary sanctions penalize third parties doing business with sanctioned countries, leveraging access to the US market and financial system. Past examples include CAATSA sanctions on China in 2018 and Turkiye in 2020. Iran's top trading partners include China, Iraq, the UAE, and Turkiye, though analysts say US leverage over China and Russia is limited.