The US Treasury is escalating the use of the dollar as a sanctions lever, with Secretary Scott Bessent saying that from Wednesday, 23 September, \u201cAll the Iranian airlines will be shut down around the world\u201d. He warned that firms or countries providing fuel, landing services or ticketing could face secondary sanctions and be excluded from the dollar system. The measures sit alongside broader US threats across sectors including energy, shipping, precious metals, crypto and manufacturing, supported by tools such as asset freezes, limits on dealings with US counterparties, restrictions on foreign banks\u2019 access to US accounts, and designations under executive orders into the Office of Foreign Assets Control\u2019s (OFAC) Specially Designated Nationals and Blocked Persons List. With allied co-operation, sanctioned entities can also be cut off from SWIFT, the Society for Worldwide Interbank Financial Telecommunication, which underpins cross-border payment messaging in an international dollar system.<\/p>\n\n
The text links these policies to de-dollarisation, pointing to increased central bank gold buying after Russia\u2019s invasion of Ukraine and subsequent co-ordinated moves by the United States, the European Union, the UK and Canada to disconnect \u201cselected\u201d Russian banks from SWIFT. It also says gold has overtaken US Treasuries as the top global reserve asset, while demand for Treasuries has fallen in recent months and long-term yields have climbed to levels last seen in 2007, alongside unsuccessful US intervention to push rates down.<\/p>\n\n
With Treasury Secretary Scott Bessent’s aggressive shutdown of Iranian airlines taking effect today, September 23, 2026, we are witnessing an unprecedented escalation in dollar weaponization. This heavy-handed move to lock non-compliant foreign entities out of the SWIFT and dollar networks will inevitably accelerate global de-dollarization. We expect immediate volatility in foreign exchange and commodity markets as international players scramble to reduce their U.S. dollar exposure in the coming weeks.<\/p>\n\n
We advise derivative traders to aggressively position for a continued surge in gold. Central banks have already bought historic amounts of gold in recent years, with global official purchases averaging over 1,000 metric tons annually to hedge against Washington’s financial sanctions. Buying long-term call options on gold futures remains one of our strongest recommendations as the metal cements its role as the ultimate alternative reserve asset.<\/p>\n\n
We must also prepare for further pain in the rapidly deteriorating U.S. Treasury market, where foreign demand has steadily dried up. With 10-year Treasury yields currently flirting with critical highs near 4.8%, the downward pressure on bond prices is set to intensify. Derivative traders should consider buying puts on long-term Treasury ETFs or shorting bond futures to profit from rising yields.<\/p>\n\n
Additionally, the direct threat to Iran\u2019s economic infrastructure is highly likely to disrupt global energy markets. Historically, escalating tensions in the Middle East cause sudden spikes in crude oil, similar to the price shocks observed during previous sanctions rollouts. We recommend holding near-term call options on Brent and WTI crude to capitalize on these inevitable geopolitical risk premiums.<\/p>\n\n
Finally, we anticipate a bumpy road ahead for the U.S. dollar index as secondary sanctions push more bilateral trade into local currencies. Trading puts on the dollar against commodity-backed currencies or safe havens like the Swiss Franc offers a strategic hedge against sudden dollar depreciation. Maintaining short dollar exposure will help protect trading portfolios from the threat of a domestic inflation spike.<\/p>\n\n\n\n