The U.S. is threatening to cut any country that trades with Iran out of the dollar system — a move that could push up interest rates on American mortgages, car loans, and credit cards.

• Treasury Secretary Scott Bessent announced a sweeping sanctions push aimed at every country and company still doing business with Iran.
• The new weapon is kicking foreign banks and firms off the dollar payment system entirely, not just more sanctions on Iran itself.
• Bessent admitted the plan could blow up the global financial system, which is why a grace period was given instead of acting immediately.
• China is the biggest problem: most of its oil imports come from Iran, and it has little reason to back down.
• If big economies build a way to trade without the dollar, U.S. borrowing costs jump — on the national debt and on ordinary loans.

Outlook: This looks more like a bluff than a plan, and if countries call it, the U.S. either backs down or triggers the financial damage it just warned about.