• The U.S. Treasury is set to expand secondary sanctions to cover any activity in designated Iranian sectors, according to a source familiar with the matter.
  • This move aims to further restrict Iran's access to international financial systems and curb its oil and hard-currency revenues.
  • The policy underscores the U.S.'s 'maximum pressure' approach, with implications for global oil markets and multinational firms.

Broadening the Sanctions Net

The U.S. Treasury's Office of Foreign Assets Control (OFAC) is preparing to make any activity in certain Iranian sectors subject to secondary sanctions, a person familiar with the matter said on Thursday. This would mark a significant escalation in the U.S. campaign to isolate Iran's economy, targeting not just direct transactions but also any involvement by foreign entities.

While the specific sectors were not identified, the move aligns with the ongoing expansion of sanctions targeting Iran's petroleum, petrochemical, and financial networks. According to the source, the policy is designed to "make any activity in designated sectors subject to secondary sanctions," a departure from the current approach that focuses on specific transactions or entities.

Maximum Pressure Intensifies

The expected action builds on a series of recent designations and regulatory updates. Under Executive Order 13902 and companion orders, OFAC has already targeted Iran's oil, gas, and financial sectors. In recent weeks, the agency has sanctioned Iranian banks, oil brokers, exchange houses, and even digital-asset platforms, as part of a broader effort to constrict Iran's hard-currency earnings.

"This is a logical next step in the maximum pressure campaign," said a former Treasury official, speaking on condition of anonymity. "By making all activity in certain sectors subject to secondary sanctions, the U.S. is signaling that any involvement, no matter how indirect, will be met with penalties."

The Treasury did not respond to requests for comment. The source said the action could be announced as early as next week, potentially through an amendment to the Iranian Transactions and Sanctions Regulations (ITSR) or a new executive order.

Implications for Global Markets

Industry analysts warn that the move could have ripple effects on global oil markets and multinational firms. "Companies that engage in any trade with Iran in these sectors, even through third parties, may find themselves cut off from the U.S. financial system," said a sanctions lawyer in Washington. "This could deter even indirect dealings and tighten the oil market further."

Iran's oil exports have already been under pressure, and this new measure could exacerbate supply concerns. International energy markets have been volatile, with Brent crude hovering near $80 a barrel amid uncertainty over Middle East supply.

A Tough Stance, with Exemptions Debated

The broad messaging reinforces the U.S. aim to deter Iran's destabilizing activities, including its nuclear program and support for regional proxies. However, it raises questions about humanitarian exemptions and enforcement risks for third-country actors. While the U.S. has historically carved out exceptions for food and medicine, experts say the new policy could complicate such transactions.

"The challenge is ensuring that humanitarian goods still flow," said a former OFAC official. "The administration will need to balance its tough stance with the need to avoid a humanitarian crisis in Iran."

As the Treasury finalizes the details, stakeholders are bracing for the impact. "We're in a period of heightened sanctions risk," said the sanctions lawyer. "This is a clear warning to anyone doing business with Iran."

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(Updates with analyst commentary and market context. An earlier version of this story misstated the timing of the announcement; it is expected next week.)