标签： Oceania

Six months into a grinding, stalemated war between the US-led coalition and Iran, Washington has launched a sweeping new sanctions campaign labeled an “economic asphyxiation” of the Iranian regime, according to an announcement from US Treasury Secretary Scott Bessent on Monday.

Bessent framed the new measures as an “economic D-Day” for Tehran, outlining a strategy to cut off every remaining economic lifeline connecting Iran to the global economy. The plan expands Washington’s secondary sanctions regime, which targets third-party entities that continue to do business with Iran, and carries a stark warning: any country that refuses to join the US-led campaign will face isolation alongside Tehran.

Notably, the announcement did not name specific target countries beyond Iran or lay out a clear timeline for implementation, but it does map out new sanctions coverage that reaches across key sectors of Iran’s economy. Expanded penalties will target Iran’s digital assets, technology trade, gold reserves, aviation industry and commercial shipping networks. The Treasury Department also issued immediate sanctions against 60 individuals, companies and vessels accused of supporting Iran’s oil revenue generation, weapons procurement and cyber activity. These sanctioned entities are spread across the globe, with locations including the United Arab Emirates, Hong Kong (China), Singapore and multiple European states.

In a sharp escalation of financial pressure, Bessent vowed that any entity found facilitating money laundering on Iran’s behalf will be cut off from the US dollar financial system, a penalty that effectively excludes most major global institutions from transacting with the world’s reserve currency. He added that President Donald Trump has been personally engaging with world leaders via phone, urging them to sever economic interactions with Tehran. When asked whether major Chinese banks, which have historically facilitated Iranian oil purchases, would face penalties under the new regime, Bessent replied that “no one is above the reach of US sanctions.”

Iran has already pushed back forcefully against the new measures. Deputy Foreign Minister Kazem Gharibabadi framed the US’s announcement as an implicit admission of military failure, questioning why Washington would need to launch what it calls the “largest financial invasion in history” if it had achieved its war objectives.

“Is this a victory or an admission of America’s defeat?” Gharibabadi said in a social media post ahead of the US announcement, warning third countries against aligning with Washington’s campaign.

The current war, launched by the US and Israel in February, was initially justified over concerns about Iran’s nuclear program, but fighting and political focus have quickly shifted to the Strait of Hormuz, the strategic chokepoint that carries roughly a fifth of the world’s daily oil and gas supplies. Since the outbreak of war, Tehran has imposed a full blockade on most traffic through the strait — a move it never took in pre-war years — that has driven up global energy prices and fueled inflation, creating significant domestic political pressure on Trump ahead of November’s midterm elections.

Iran has a long history of evading crippling Western sanctions: for decades before the current war, Tehran maintained steady oil exports (mostly to China) via complex, opaque international financial networks. But data from maritime analytics firm Kpler shows that the US naval blockade around Iran has cut Iran’s daily oil exports through the Strait of Hormuz from 2 million barrels pre-war to just 400,000 barrels by mid-August.

For ordinary Iranian citizens, the new sanctions are expected to amplify already devastating economic hardship. Years of rampant inflation have already pushed millions of Iranians into financial precarity, sparking massive anti-government protests late last year and early this year. In an interview with AFP, Sarah Hassanbeigi, a 32-year-old Tehran-based pharmacist, captured the widespread public exhaustion: “I don’t think people can really take this much longer.”

In a separate change to policy, the US also announced it would suspend all sanctions exemptions for cross-border educational payments between the US and Iran, cutting off another remaining financial link between the two countries.

Despite the escalating economic pressure, diplomatic efforts to end the conflict continue to move forward. Last week, Iranian President Masoud Pezeshkian — a figure widely considered a relative moderate within the Iranian political system — stated that Tehran is in a position of strength and should seek to end the war immediately. Pezeshkian’s comment came shortly after Supreme Leader Mojtaba Khamenei appointed hardline figures to key national security posts, signaling a continued split in elite perspectives on the conflict.

On Monday, a Pakistani delegation led by army chief Asim Munir traveled to Tehran to meet with Iranian Parliament Speaker Mohammad Bagher Ghalibaf, who also serves as Iran’s chief negotiator for peace talks. Pakistan has previously emerged as a leading mediator in conflict negotiations, helping broker an April ceasefire that ultimately collapsed. As a major trading partner of Iran, Pakistan could now face secondary sanctions penalties under the new US framework. Following the Pakistani visit, Oman’s foreign minister is scheduled to travel to Iran on Tuesday for talks focused on reaching a new agreement to regulate commercial passage through the Strait of Hormuz.

A rapidly escalating transboundary trade conflict between the United States and Canada entered a dangerous new phase Monday, as former president and current US leader Donald Trump announced plans to double existing tariffs on Canadian automobiles and automotive parts starting in 2027.

In a public post to his Truth Social platform, Trump confirmed that starting January 1, 2027, all imported passenger cars, trucks of all sizes, automotive components, and Canadian steel entering the US market will face a 50% import tariff. Currently, the US imposes a 25% duty on Canadian-made vehicles that do not meet US content requirements under existing trade rules, while most Canadian steel already faces a 50% tariff under prior US trade measures.

The announcement comes just days after negotiations between Washington and Ottawa collapsed completely, failing to avert a new round of 50% US tariffs on $20 billion worth of Canadian goods that went into effect Saturday. These new levies cover approximately 5.5% of all Canadian goods entering the US, ranging from industrial inputs like cement to consumer goods including hockey sticks.

Canadian Prime Minister Mark Carney rejected what he described as an unacceptable “bad deal” from US negotiators, walked away from talks, and immediately announced reciprocal retaliatory tariffs targeting key US export sectors. Carney’s retaliatory measures, set to take effect September 8, will hit US steel, dairy products, agricultural machinery, pulp and paper, and consumer electronics.

The US has long held the position as Canada’s largest single trading partner, with 70% of all Canadian exports destined for the US market. As of 2025, US Census Bureau data ranks Canada as the second-largest goods trading partner for the US, just behind Mexico. Existing Trump administration tariffs have already placed significant pressure on core Canadian industrial sectors including auto manufacturing and steel production.

In his post Monday, Trump doubled down on his longstanding criticism of Canadian trade policy, arguing that “Canada has been ripping off the United States of America for years.” He added, “we don’t need Canada, they need us.” The Trump administration initially justified the new round of tariffs by alleging Canada engages in discriminatory trade practices against US alcohol, automotive, and dairy products. Last week, Trump delayed the implementation of the new tariffs by three days to allow for last-minute negotiations between top trade officials from both nations.

Top Canadian negotiator Dominic LeBlanc and his delegation held marathon talks with US Trade Representative Jamieson Greer and his team in Washington across Thursday and Friday, extending negotiations late into Friday night, but the two sides could not bridge core differences. According to comments Greer gave to The New York Times Saturday, the US had tabled a compromise offer ahead of the collapse: Washington offered to eliminate a 10% tariff on Canadian softwood lumber, cut the existing 25% auto tariff, and reduce the 50% steel tariff to 25% for most Canadian steel exports. The offer was rejected by Canadian leadership.

Public opinion polling from the Angus Reid Institute released Sunday shows broad domestic support for Carney’s decision in Canada: three-quarters of Canadian respondents back the government’s choice to walk away from the talks. At the same time, the poll found that two in five Canadians report anxiety over potential job losses linked to the trade dispute.

As of Monday, neither side had announced plans to schedule a new round of negotiations, and Carney confirmed late Friday that he has suspended further trade talks with Washington. The ongoing tariff conflict is not the only point of tension between the two neighbors: the US is also pushing for revisions to the US-Mexico-Canada Agreement (USMCA), the trilateral trade deal that governs regional trade, and Trump has so far refused to renew the agreement in its current form. Additional friction has been caused by repeated provocative comments from Trump suggesting Canada should become the 51st US state, comments that have stirred widespread anti-US sentiment among Canadian voters.

US automakers have not yet issued a public response to Trump’s latest tariff threat, leaving unclear how the proposed 2027 duty increase would impact North American integrated auto supply chains that rely heavily on cross-border movement of parts and vehicles.

As Australia positions itself to compete for a slice of the booming global artificial intelligence economy, Prime Minister Anthony Albanese has issued a stark warning: without successfully attracting large-scale international AI investment, the nation faces eroding living standards in the years ahead. The warning comes ahead of a packed week of national policy talks, with Albanese set to address the Business Council of Australia’s (BCA) annual dinner Tuesday, followed by a critical National Cabinet meeting with state and territory leaders Wednesday to align on a unified national AI strategy.

At the core of the federal government’s new plan is a first-of-its-kind national AI framework, which Albanese will outline to state and territory leaders. The framework establishes binding national standards for the sector, including minimum requirements for water and energy consumption for power-hungry AI training data centres, alongside mandatory training protocols for teams working on copyright compliance, AI safety, and cybersecurity. A central office within the Prime Minister’s own department will oversee the unified policy framework, making Australia one of the first advanced economies to consolidate AI regulation under a single national governance structure.

Albanese emphasizes that Australia’s existing geographic, diplomatic, and economic advantages put it in a strong competitive position to draw investment for large-scale data centres. However, he stresses that maintaining public trust — or “social licence” — will be the make-or-break factor for long-term sector growth. This means guarding against household energy price hikes, protecting regional water security, and selecting appropriate locations for new infrastructure development. Getting this strategy right, he argues, would let Australia establish itself as the leading AI infrastructure hub for the Indo-Pacific, boosted by its existing status as a Five Eyes intelligence partnership member. Beyond economic gains, Albanese says a thriving domestic AI sector will strengthen national sovereignty, boost national security, lift business productivity, accelerate scientific innovation, and build national economic resilience.

For Albanese, the AI boom represents a once-in-a-generation economic opportunity. The overarching goal of all levels of Australian government, he argues, should be to turn the nation’s already competitive investment conditions into a distinct comparative advantage that aligns with long-term national interests. Capturing a larger share of the global AI market, hosting large-scale AI training facilities, and unlocking domestic frontier AI development will not only deliver greater economic value and technical expertise but also boost Australia’s global strategic influence. Crucially, he adds, building a strong, innovation-driven economy with robust national institutions will help Australia fend off the rising wave of populism that has reshaped politics across much of the developed world. “Australia’s economy and democracy are in an excellent place,” Albanese will tell BCA attendees. “By working intelligently together, we will keep them there.”

The prime minister’s warning echoes a new analysis from the BCA, which released its own 18-point roadmap this week to boost Australia’s global competitiveness and attract much-needed foreign investment. BCA Chief Executive Bran Black will echo Albanese’s warning, noting that Australia currently ranks just 21st out of 42 nations on the BCA Global Competitive Index — a result Black says is unacceptable for a nation with Australia’s inherent advantages.

Black argues that Australia cannot tax, overregulate, or redistribute its way to higher living standards. Instead, sustained economic growth and productivity gains are the only path to lifting household prosperity. “To do this, we have to create the conditions for businesses to invest, innovate, expand and employ more Australians,” Black will say. “As you know, the good news is that Australia starts with advantages most countries envy.”

The BCA roadmap frames AI as a core pillar of Australia’s plan to climb the competitiveness rankings. “AI has the potential to lift productivity, attract enormous investment, create new industries and improve the way Australians work and live,” Black notes. For Australian households struggling with ongoing cost-of-living pressures, the council says the solution is not additional taxes or government handouts, but a “laser focus” on growing the economy and closing Australia’s long-standing productivity gap. This approach, the BCA argues, will ultimately deliver higher wages, increased housing supply, and improved public services for all Australians.