The United States has escalated its economic sanctions against Iran and reinstated a military blockade following renewed attacks in the Strait of Hormuz and the breakdown of negotiations between the two nations.

The US Treasury Department announced new sanctions on Tuesday targeting the shipping network of Hossein Shamkhani, a secretive Iranian business empire leader whom US officials accuse of handling strategic oil and weapons transactions for Tehran and Moscow. The Treasury sanctioned over 50 entities, including shipping firms, vessels, digital wallets, and individuals.

In a social media post, US Treasury Secretary Scott Bessent stated that the US also sanctioned several digital asset wallets allegedly linked to Iran's central bank, freezing more than $130 million in funds.

These measures coincide with the US, under President Donald Trump, reinstating a blockade on vessels traveling to or from Iranian ports or coastal areas. US Central Command stated the maritime blockade was resumed at 4 p.m. New York time on Tuesday.

Bessent said in a statement, "The Treasury is shutting down the financial infrastructure that enables this regime to continue threatening U.S. national security and global shipping."

This follows the signing of an interim peace agreement by Trump and Iranian President Masoud Pezeshkian on June 17. However, tensions over control of the Strait of Hormuz led to the suspension of talks, with Iran and the US resuming reciprocal attacks, prompting the White House to increase military and economic pressure on Tehran.