US Treasury Secretary Scott Bessent Announces Historic Economic Isolation and Toughest Sanctions Ever on Iran

Treasury Secretary Scott Bessent announced on Thursday that the US will impose its toughest ever sanctions on Iran, as Washington increases its economic threats amid an impasse in negotiations to end the conflict.

Mr Bessent stated that he plans to hold a news conference on Monday to detail the upcoming measures. "Economic pressure means that we are going to all of our allies – and this is going to be the greatest co-ordinated economic isolation in the history of the world – and we are going to them and saying, 'You are either with us or against us'," he told CNBC.

The US has pledged to enact stronger economic measures against Iran as a US naval blockade in the Strait of Hormuz has failed to force Tehran to reopen the crucial waterway. A 60-day ceasefire between the two sides expired on Monday. Iran's central bank governor noted that the country is not exporting any oil, while Iran also battles runaway inflation and a plunging currency.

Iran's regime has weathered sanctions for decades, dating back to Jimmy Carter's administration, which began an economic pressure campaign following the seizure of the US embassy in Tehran in 1979. More than 6,000 sanctions are currently in place across Iran's financial, banking, aviation, energy, and cryptocurrency sectors.

"It is a one-two punch. We have the blockade on Iran and we are going to have the toughest sanctions in history," Mr Bessent said. "It is going to work in Iran and we are going to collapse this regime. If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale war restart… but I would emphasise, that is for now."

On Wednesday night, US President Donald Trump promised economic warfare and isolation on an unprecedented scale, warning that governments and financial institutions providing support to Iran would face economic consequences.

The US pitch received a boost when the UAE announced it was severing all trade and financial ties with Iran after Tehran fired two missiles at the Emirates. Afra Al Hameli, director of strategic communications at the Ministry of Foreign Affairs, confirmed the commitment in a statement posted on X on Monday.

Tehran also relies on Turkey, India, and China for access to foreign currency, with Beijing's economic ties facing increased scrutiny. Beijing is a heavy importer of Iranian crude oil, which accounts for about 90 per cent of China's imports, and remains one of the few governments willing to bypass sanctions. While Washington has targeted China's teapot refineries, it has not yet taken escalatory measures against major Chinese banks ahead of President Xi Jinping's upcoming visit to the White House.

Mr Bessent did not elaborate on whether China would be a primary focus of the economic threats, noting that many conversations are best held in private.