Trump chooses sanctions over strikes, for now, against Iranian regime

By Michael Koziol Updated January 16, 2026 — 5.27am first published at 4.30am Save Log in , register or subscribe to save articles for later. Save articles for later Add articles to your saved list and come back to them any time. Got it Normal text size Larger text size Very large text size Washington: The US will sanction 18 Iranian officials and entities accused of laundering the proceeds of oil sales as President Donald Trump ramps up pressure on the Islamic regime in Tehran but holds off on military action to support widespread protests. Among the people hit by the new sanctions is Ali Larijani, secretary of Iran’s Supreme Council for National Security, whom the US says was one of the first leaders to call for violence to suppress the uprising in Iran – which is the largest in many years. Trump and Iran’s National Security Council chief Ali Larijani traded threats in December. Credit: AP The development came as multiple global news outlets reported Arab states had engaged in intense diplomatic efforts over the past two days to convince Trump not to strike Iran. They included Saudi Arabia, Qatar, Egypt and Oman, according to one Gulf official cited by newswire 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 a Canadian citizen had died “at the hands of the Iranian authorities” amid the protests, though she did not provide further details. US Treasury Secretary Scott Bessent said the new sanctions – made at Trump’s direction – would continue the administration’s pressure campaign since March aimed at accelerating Iran’s economic collapse. “Our sanctions efforts have been effective in slashing oil exports and cutting revenue. The currency and living conditions [in Iran] are in freefall,” he said on Thursday morning, US time. “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.” Advertisement Bessent reiterated Trump’s support for protesters who are currently risking their lives on the streets of Tehran and other Iranian cities. The US president said earlier this week that “help is on its way” , which many interpreted as a promise to intervene militarily. The president took particular objection to the brutality of the regime’s violence against protesters. Human Rights Activists in Iran, a US-based organisation, says the death toll now exceeds 2600. Photos posted by Vahid Online on January 14, 2026, claim to show body bags at Kahrizak Forensic Medicine Centre in Tehran. There was widespread expectation of US strikes when, in the early hours of Thursday, Iran closed its airspace to all but a few select international flights to Tehran, and the US withdrew some personnel from military bases in the region. But Trump softened his position at the same...

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