U.S. ramps up Iran sanctions as Trump defends war decision

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U.S. ramps up Iran sanctions

Highlights

Trump maintains he has no regrets about starting the Iran war, asserting the action was necessary to prevent Iran from acquiring a nuclear weapon.
Treasury Secretary Scott Bessent reveals new sanctions coming Monday, after the U.S. shuttered Dubai branches of Egypt's second largest bank over $1.8 billion linked to Iran.
Administration's mix of military action and financial isolation drives persistent energy market tension amid speculation the war could extend beyond the midterm elections.

Trump stance and sanctions timeline

As reported by CNBC, Trump says he has no regrets about starting the Iran war and maintains that he would have ordered the attack even if it hurt Republican prospects in the midterm elections. In comments to Fox News host Laura Ingraham on Thursday in the U.S., he argues that failing to act would have allowed Iran to obtain a nuclear weapon and threaten Israel, the Middle East and U.S. cities.

His remarks come as investors brace for a potentially longer conflict after the Wall Street Journal reported that senior White House advisers discussed with Trump the possibility that the war could extend beyond his current term. Trump nonetheless says the war will end immediately after the midterm elections and that oil and gas prices will also fall, repeating his broader claim that the conflict will end soon.

Treasury Secretary Scott Bessent also signals that the administration is preparing another sanctions step on Monday. He says the U.S. has already sanctioned and shut Dubai branches of Egypt's second largest bank, alleging the lender provided Iran with $1.8 billion, and adds that the largest Turkish bank aiding Iran has also been sanctioned, without naming the institutions.

Conflict risks and regional market impact

In separate comments to NewsNation on Thursday, Trump rejects Iranian claims that Tehran damaged multiple U.S. fighter aircraft at a base in Jordan. He says there was "No damage. No nothing," when asked whether the reports were accurate.

Trump also questions how long Iran can withstand the current level of economic pressure, saying he does not know whether the country will be able to hold out. His comments reinforce the administration's strategy of combining military action with financial isolation, a mix that keeps energy markets and regional risk sentiment focused on the duration of the war and the timing of any post-election settlement.

Our earlier report on Operation Economic Outcast explained how the U.S. Treasury is escalating banking-related sanctions to tighten financial pressure on Iran amid the wider Middle East conflict. We outlined the plan to target additional Iran-linked entities and channels used for sanctions evasion, and noted that a major bank was expected to be hit with a new measure on a Monday timeline as enforcement ramps up.

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