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Iran Conflict 2026
12AUG

The sanctions that need no signature

3 min read
14:52UTC

The US Treasury has kept sanctioning Iran throughout the war under a pre-war memorandum, freezing nearly half a billion dollars while Trump has signed no new order of his own.

ConflictDeveloping
Key takeaway

US sanctions on Iran keep firing on pre-war authority; only sanctions relief needs a new signature.

The US Treasury has run a named, continuous sanctions campaign against Iran throughout the war, even as the White House has signed no new Iran measure. Treasury calls the campaign Economic Fury, and it operates under National Security Presidential Memorandum 2 (NSPM-2), a pre-war order that delegates designation power to the department rather than requiring a fresh presidential signature 1.

On 27 May the Office of Foreign Assets Control (OFAC), Treasury's sanctions arm, designated Iran's Persian Gulf Strait Authority for extorting Hormuz shipping tolls; on 10 June it blacklisted nine China and Hong Kong entities for arming the Islamic Revolutionary Guard Corps (IRGC) 2. Treasury says the campaign has frozen "nearly half a billion" dollars and disrupted "tens of billions" in regime-linked revenue 3. A direct query of the Federal Register returned zero new Iran filings between 29 June and 2 July 4.

The gap between an empty signing record and live enforcement has a mechanism. NSPM-2 delegates designation authority to OFAC through executive orders that predate the conflict, so Treasury can keep naming targets while any genuinely new instrument stalls. The one Iran action that did need a fresh signature, General Licence X, loosened sanctions rather than tightening them, and its missing escrow and reporting caps handed Chinese buyers a 60-day safe harbour . Relief requires a pen; pressure does not.

Donald Trump's public words and Washington's actions point in opposite directions. On 30 June he demanded cheap petrol on Truth Social and signed nothing ; on 1 July he called the denuclearisation of Iran "moving along well" 5. His earlier order for a Justice Department oil-gouging probe sits in the same column: enforcement motion that does not require settling the war.

Deep Analysis

In plain English

The US Treasury has been sanctioning parts of Iran's economy continuously since before the war even started, under a standing campaign called Economic Fury. It does not need the president to sign anything new each time: officials can add names to the sanctions list on autopilot. In the past six weeks alone, Treasury sanctioned the Iranian body that tries to collect tolls from ships in the Strait of Hormuz, and nine companies in China and Hong Kong accused of helping arm the IRGC, Iran's most powerful military force. Even though no new sanctions appeared in the official US government record for four straight days, that gap does not mean enforcement stopped.

Deep Analysis
Root Causes

Economic Fury runs on National Security Presidential Memorandum 2, a delegation of designation authority to Treasury that predates the war and requires no fresh presidential signature to continue. That is structurally different from General License X, the one Iran sanctions instrument that did need Scott Bessent's active signature to authorise oil sales and dollar payments .

The zero-filing gap between 29 June and 2 July does not mean enforcement paused: OFAC's designation pipeline runs independently of both the Doha talks and the Federal Register's publication cycle, so a quiet week in the public record does not mean a quiet week inside Treasury.

What could happen next?
  • Consequence

    Continued designations during the funeral pause keep economic pressure on Iran even while every diplomatic channel is closed.

  • Risk

    If Tehran reads ongoing designations as evidence Washington is not serious about a deal, it hands hardliners in the Assembly of Experts and IRGC ammunition against the negotiators.

First Reported In

Update #143 · Diplomacy pauses for a funeral under threat

US Department of the Treasury· 2 Jul 2026
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Different Perspectives
Anwar Gargash, UAE presidential diplomatic adviser
Anwar Gargash, UAE presidential diplomatic adviser
Gargash warned the region cannot stay trapped between "neither war nor peace", naming the stalemate itself as unsustainable for a Gulf state hosting US forces and absorbing the shipping-risk cost without being party to either the strike decisions or the corridor talks.
Shipping and insurance underwriters
Shipping and insurance underwriters
War-risk premiums are still set against an active blockade and a fatal Bab el-Mandeb attack with an unresolved vessel identity. A disabling strike and a diplomatic "advanced" claim pulling in opposite directions gives underwriters no single signal to reprice cover against.
Pakistan and Qatar (Oman corridor mediators)
Pakistan and Qatar (Oman corridor mediators)
Pakistan's defence minister said matters are "shaping up in favor of peace" on Hormuz and a Qatari spokesperson called the Iran-Oman reopening talks advanced. Both are publicly ahead of Tehran's own security council, which has just disowned the deal's significance.
United States Central Command / President Trump
United States Central Command / President Trump
CENTCOM confirmed a helicopter strike disabled a container ship that tried to evade the blockade, and Trump said the US "totally controls" the Strait of Hormuz. Washington is treating evasion of the blockade as grounds for disabling fire rather than the redirection tactic CENTCOM used through July.
Mohsen Rezaei, Iran's Supreme National Security Council
Mohsen Rezaei, Iran's Supreme National Security Council
Rezaei told China's ambassador Hormuz reopens only when the US ends the war and unblocks Iran's funds, and that the Oman transit deal "will have no impact" on that decision. He is drawing a hard line between the technical corridor track and the political settlement his council controls.
Yemen's internationally recognised government and affected communities
Yemen's internationally recognised government and affected communities
SABA reported at least 17 soldiers killed at Saudi-backed camps in eastern Yemen as tanker use of Bab el-Mandeb fell. The fighting adds civilian and supply risks to a route ships use when Hormuz is unsafe.