Trump Wants More Economic Pressure on Iran: U.S. Options Explained
Trump wants more economic pressure on Iran. Here are the main U.S. options, including oil sanctions, Chinese banks, refineries, trade limits and tariffs.
Raja Awais Ali
8/16/20263 min read
Trump Wants More Economic Pressure on Iran: What Options Does the U.S. Have?
U.S. President Donald Trump has signaled that Washington wants to increase economic pressure on Iran, saying the United States is preparing stronger economic measures against Tehran. A day earlier, U.S. Treasury Secretary Scott Bessent also said that Washington would introduce measures against Iran that would be “never seen before.”
The United States, the United Nations and the European Union have imposed different sanctions on Iran for decades. These restrictions have been linked to Iran’s nuclear program, human rights concerns and its support for various armed groups. Since the Iran war began in February 2026, the United States has introduced additional maritime, energy and financial sanctions against Tehran, while also starting a naval blockade.
According to data from the U.S. Treasury Department’s Office of Foreign Assets Control, known as OFAC, more than 1,000 individuals, vessels and aircraft have been sanctioned since the beginning of Trump’s second term. Recent measures have targeted Iran’s so-called “shadow oil fleet,” shipping insurance companies, individuals and organizations accused of helping Iran obtain weapons, and digital exchanges. U.S. officials also say that around $500 billion worth of cryptocurrency linked to Iran has been frozen.
Experts say the United States has several options if it wants to increase economic pressure on Iran even further. One of the most important options would be imposing sanctions on China’s independent oil refineries, often known as “teapot refineries.” These refineries account for around one-quarter of China’s total refining capacity. According to 2025 figures, China buys more than 80% of Iran’s exported oil supply, with a large share of this trade handled through independent refineries. While previous U.S. sanctions have discouraged major refineries from buying Iranian oil, experts say some smaller refineries remain relatively protected because they have less exposure to the U.S. financial system.
Another possible option is to impose sanctions on Chinese banks. U.S. authorities have already sanctioned some smaller financial institutions in China and Hong Kong over alleged assistance with Iranian oil trade and weapons purchases. The U.S. Treasury has also warned two major Chinese banks that they could face secondary sanctions if Iranian funds are found moving through their systems. Experts say such measures could send a strong warning to larger financial institutions, but they could also create further tension between the United States and China.
The United States could also target more individuals and companies involved in helping Iran avoid sanctions. In recent months, the Treasury Department has sanctioned organizations accused of helping Iran use oil revenue to pay for imports. However, some experts describe this as a “whack-a-mole” strategy, in which a new organization can quickly replace one that has been shut down. Despite this challenge, Washington could take further action against oil tankers, buyers and currency exchange networks linked to Iran.
Another proposal is a possible land blockade aimed at restricting Iran’s trade through its land borders. Such a plan would require cooperation from neighboring countries including Iraq, Turkey, Pakistan, Afghanistan, Turkmenistan, Azerbaijan and Armenia. Experts say this would be extremely difficult to implement because Iran has long borders covering different geographic areas. Such restrictions could also affect ordinary Iranian citizens by disrupting the supply of essential goods, including food, energy products and textiles.
The Trump administration could also use secondary tariffs as another way to increase pressure. President Trump has repeatedly threatened additional tariffs against countries that continue trading with Iran. Although the U.S. Supreme Court has previously rejected certain legal grounds for tariffs, the U.S. Senate recently approved a broad sanctions bill related to Russia that also includes provisions concerning new Iran sanctions and additional tariff powers. The bill still needs approval from the House of Representatives, where its passage is not considered certain.
Overall, the United States has already imposed extensive sanctions on Iran, but the Trump administration is now considering even stronger measures. These could include targeting Chinese refineries and banks, taking action against networks that help Iran avoid sanctions, restricting land trade and introducing new tariffs. However, experts say the success of these measures will depend not only on the strength of the sanctions but also on how effectively they are enforced and how much international cooperation Washington can secure.
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