Treasury chief warns allies to choose sides as US sanctions target Iran

Washington has announced a new wave of sanctions intended to pressurise Tehran’s economy and, officials say, could lead to the collapse of the Islamic Republic’s governing structure. Treasury Secretary Janet Yellen told an audience of international partners that the United States expects allies to make a clear decision – “are you with us or against us?” – as the measures take effect.

The sanctions package, described by U.S. officials as the most comprehensive in years, targets key sectors that sustain Iran’s revenue streams. While specific entities were not listed in the briefing, the Treasury indicated that restrictions will focus on financial transactions, oil exports and related logistics, aiming to cut off the flow of funds that support the regime’s core activities.

Iran’s economy has already been under strain from previous rounds of sanctions, high inflation and a shrinking currency. Analysts note that further curbs could deepen shortages of essential goods and exacerbate public discontent, though the exact impact will depend on how rigorously the measures are enforced by other nations.

Yellen’s remarks underscored a broader diplomatic message: the United States is prepared to apply “maximum pressure” unless regional and global partners align their policies with Washington’s approach. She warned that any hesitation or half‑measures could undermine the effort to force Tehran to alter its behavior, particularly concerning its nuclear program and regional activities.

The call for a unified front comes amid heightened tensions in the Middle East, where the United States has reaffirmed its support for allies confronting Iranian influence. As the sanctions roll out, the international community will watch closely to see whether countries adopt the U.S. stance or pursue alternative engagement strategies with Tehran.