Bessent vows to isolate Iran's economy as US increases pressure on allies

Treasury Secretary Scott Bessent announced on Thursday that the United States will impose its most stringent sanctions on Iran yet, intensifying economic pressure in the ongoing conflict impasse. Bessent plans to hold a press conference on Monday to detail the exact measures the US will take. He emphasized that this coordinated economic isolation would be the most significant in world history, urging allies to choose sides.

The US has pledged stronger economic measures following the failure of a naval blockade in the Strait of Hormuz. Iran's central bank governor confirmed that the country is no longer exporting oil and is grappling with inflation and a weakening currency. Iran has faced over 6,000 sanctions since Jimmy Carter's administration, targeting various sectors including finance, aviation, energy, and cryptocurrencies.

Bessent stated that the economic pressure, coupled with the naval blockade, will likely prevent a large-scale restart of hostilities. US President Donald Trump also pledged unprecedented economic warfare against Iran, threatening consequences for governments and financial institutions supporting Tehran. The UAE recently severed all trade and financial ties with Iran in response to Tehran's missile attacks.

Bessent noted that China, which imports 50% of its energy from the Gulf, would benefit from reopening the strait and urged China to cooperate. While Washington has targeted China's refineries, no further measures have been taken against major Chinese banks. The focus of economic threats on China remains unclear.