Middle East live: US threatens Iran with economic isolation like 'never seen before'

The US has threatened to impose economic isolation on Iran like the world has never seen before. US Treasury Secretary Scott Bessent said new measures are expected next week. The US also warned it could maintain a naval blockade of Iran indefinitely, reviving crude supply concerns and driving up fuel prices.

The blockade has inflicted severe economic damage on Iran, and tensions around the Strait of Hormuz have intensified. The strait is one of the world's most strategically important shipping routes, carrying 20 per cent of the world's oil before the conflict. Iran has limited traffic through the strait, and there have been reports of attacks on vessels attempting to transit the waterway.

The UAE accused Iran of attacking two vessels operated by state-owned Abu Dhabi National Oil Company (ADNOC) while they were transiting the strait. According to US Defence Secretary Pete Hegseth, the US Navy can maintain a blockade indefinitely by rotating ships in and out. Oil prices have edged higher, with Brent futures rising to US$87.16 a barrel and US West Texas Intermediate (WTI) crude futures rising to US$81.29 a barrel.

Brief written by urgent.news from France 24, New Straits Times, The Vibes — 3 reports on this story. Machine-written — it may contain errors, so check the original before relying on it.