President Donald Trump’s recent threat to impose new sanctions on Iran has drawn mixed reactions regarding its potential impact and execution. While Trump has previously been criticized for making aggressive threats that were not fully enforced, experts emphasize that any sanctions on Tehran could still carry significant consequences if implemented effectively.

Trump has gained a reputation on Wall Street for issuing strong warnings only to back down later, a pattern that has led to the moniker “TACO” — Trump Always Chickens Out. Despite this skepticism, analysts caution that the seriousness of forthcoming measures should not be underestimated. Enforcement remains a critical element in the sanctions’ success, according to Dr. Quilliam, a policy expert on the region.

One legal hurdle involves restrictions on secondary sanctions, which have been struck down multiple times by the U.S. Supreme Court. These sanctions typically target foreign entities that do business with Iran, complicating U.S. efforts to isolate Tehran economically. Nevertheless, there remains potential for more targeted sanctions. The Trump administration could focus on smaller Chinese refineries known as “teapot” refineries, which make up about a quarter of China’s oil refining capacity. Sanctions might also extend to Chinese financial institutions and efforts to impose restrictions on land trade routes.

Last week, the U.S. Senate approved a sanctions package originally designed for Russia but expanded to include tougher measures on Iran. This legislation would potentially grant the president broader authority to impose tariffs against countries that assist Iran’s commercial and weapons-related activities. However, the bill still requires approval from the House of Representatives, where opposition exists on both sides of the aisle, citing concerns over the scope and possible consequences of the sanctions.

U.S. Treasury Secretary Scott Bessent emphasized the unprecedented nature of the planned sanctions, stating that the administration intends to implement measures “never seen” before against Tehran. He also acknowledged that the process for rolling out such comprehensive sanctions would be complex and time-consuming, with effects that would not materialize immediately.

Overall, while the Trump administration’s threats may face legal and political challenges, the prospect of intensified economic pressure on Iran remains a possibility, contingent on congressional approval and effective enforcement mechanisms.