Key Takeaways:
The US Treasury escalated economic pressure on Iran with new sanctions on the Persian Gulf Strait Authority, even as President Donald Trump prepares a final decision on a tentative 60-day ceasefire deal that would reopen the Strait of Hormuz.
The Treasury Department on Wednesday added the Persian Gulf Strait Authority — an Iranian body established to manage passage requests through the Strait of Hormuz — to its Specially Designated Nationals list under counterterrorism sanctions authorities, citing links to the Islamic Revolutionary Guard Corps. The action is part of "Operation Economic Fury," a coordinated campaign Treasury Secretary Scott Bessent described as designed to "systematically degrade Tehran's ability to generate, move, and repatriate funds."
"The authority was designated under counterterrorism sanctions authorities and was linked to the Islamic Revolutionary Guard Corps," the Treasury Department said in a statement.
The sanctions come as Trump confirmed he is holding a White House Situation Room meeting with advisors to make a "final determination" on a tentative agreement that would extend the fragile ceasefire by 60 days and reopen the Strait of Hormuz, through which about a fifth of the world's oil and gas transits. The proposed memorandum would require Iran to remove all mines from the waterway within 30 days and bar it from imposing tolls, according to a US official who spoke on condition of anonymity. The US would gradually lift its blockade on Iranian ports and relax sanctions to allow more Iranian oil sales.
Iran's main negotiator, Mohammad Bagher Qalibaf, signaled deep distrust, writing on X that "no step will be taken before the other side acts" and that Iran does "not gain concessions through talks, but through missiles." The Islamic Republic holds 440.9 kilograms of uranium enriched to 60% purity, a short technical step from weapons-grade levels of 90%, according to the International Atomic Energy Agency.
Sanctions Expand as Diplomatic Window Narrows
Beyond the strait authority designation, the Treasury also imposed additional sanctions on the Iranian military's oil sales arm, extending the administration's economic pressure campaign. OFAC has already frozen $344 million in cryptocurrency wallets tied to the regime, according to Treasury disclosures tied to Operation Economic Fury.
The dual-track approach — sanctions escalation alongside diplomatic talks — mirrors the strategy Bessent outlined in his April 22 Senate testimony, where he described swap lines and sanctions as complementary tools. Days after Bessent publicly endorsed an emergency dollar swap line for the United Arab Emirates, Abu Dhabi announced on April 28 it was leaving both OPEC and OPEC+, a move that aligned the Gulf state more closely with the US financial orbit.
The last time the US imposed coordinated sanctions on Iran's strait-related infrastructure was during the 2019 maximum pressure campaign, when Iranian oil exports fell below 300,000 barrels per day, roughly a tenth of their pre-sanctions peak. Brent crude traded near $62 a barrel at the time; the current closure of the strait has sent fuel prices soaring globally, with effects felt far beyond the Middle East.
Vice President JD Vance suggested Thursday that negotiators were trying to strike general terms on Iran's nuclear program in the tentative agreement, with specifics to be hammered out in subsequent talks. "We're in a position where we could substantially set back their nuclear program, not just during the term of this president but over the long term," Vance said.
Iranian Foreign Minister Abbas Araghchi said Friday he discussed the strait's future management with his Omani counterpart, expressing solidarity "in the face of any threat." The comment came after Trump warned Oman not to enter into any agreement with Iran to share control of the strait, or the US would "have to blow them up."
This article is for informational purposes only and does not constitute investment advice.
