Updated January 16, 2026 — 7:08am
Washington: In a significant geopolitical maneuver, the United States has imposed sanctions on 18 Iranian officials and entities accused of laundering oil sale proceeds. This move by President Donald Trump aims to intensify pressure on Tehran’s Islamic regime while refraining from immediate military intervention amidst widespread protests across Iran.
Among those affected by the sanctions is Ali Larijani, secretary of Iran’s Supreme Council for National Security, who the U.S. claims was instrumental in advocating for violent measures to suppress the protests, the largest seen in Iran for years.
Diplomatic Efforts and Regional Reactions
The decision to opt for sanctions over strikes comes after intense diplomatic efforts by Arab states, including Saudi Arabia, Qatar, Egypt, and Oman. These countries reportedly urged President Trump to avoid military action, as confirmed by a Gulf official to Reuters. “Things have de-escalated for now,” an Arab official told The Financial Times. “The US is giving time for talks with Iran and to see where they go from here.”
Meanwhile, Canada’s Foreign Minister Anita Anand announced the death of a Canadian citizen “at the hands of the Iranian authorities” during the protests, though details remain sparse.
Economic Pressure and Humanitarian Concerns
U.S. Treasury Secretary Scott Bessent stated that the new sanctions, directed by Trump, are part of a broader campaign initiated in March to hasten Iran’s economic downfall. “Our sanctions efforts have been effective in slashing oil exports and cutting revenue. The currency and living conditions [in Iran] are in freefall,” he remarked.
“The central bank is broke and printing money. Hyperinflation is next … The regime has chosen to squander what remains of the nation’s oil revenues on nuclear weapons development, missiles, and terrorist proxies around the world.”
Bessent also reiterated Trump’s support for Iranian protesters, who are risking their lives against the regime. Human Rights Activists in Iran, a U.S.-based organization, reports that the death toll from the protests now exceeds 2,600.
Potential for Military Action Remains
There was an expectation of U.S. strikes when Iran closed its airspace to most international flights and the U.S. withdrew personnel from regional military bases. However, Trump softened his stance, citing assurances from trusted sources that the killings had ceased and that executions of political prisoners would not occur.
Iranian state media reported that Erfan Soltani, a 26-year-old protester arrested last week, had not been sentenced to death. Trump has not dismissed the possibility of military action but is waiting to see if promises to halt the violence are upheld.
International Perspectives and Future Implications
White House press secretary Karoline Leavitt noted that up to 800 planned executions were halted but did not confirm whether Arab states influenced Trump’s decision. Reports suggest Israeli Prime Minister Benjamin Netanyahu also advised postponing an attack.
Some reports from Iran indicate that protests are diminishing, although verification is challenging due to internet and phone blackouts. Witnesses in Tehran reported calmer streets with fewer signs of unrest.
Those advocating for a military strike remain optimistic. Interventionist Republican Senator Lindsey Graham stated, “The question is, when we do an operation like this, should it be bigger or smaller? I’m in the camp of bigger. Time will tell.”
According to Ian Bremmer, president of Eurasia Group, the intervention by Gulf states was crucial in persuading Trump to hold off. “The Turks were also very skeptical and opposed, and they sent those messages to Trump,” he said.
Bessent extended an olive branch to Iranian leaders, suggesting there is “still time” to align with U.S. interests. “Stop the violence and stand with the people of Iran,” he urged.
As the situation continues to evolve, the international community watches closely, with hopes for a peaceful resolution and improved conditions for the Iranian populace.
With AP, Reuters
