US threatens 'toughest sanctions in history' on Iran; oil prices surge as Trump warns of 'economic warfare'

The United States announced it will impose the most stringent sanctions in history on Iran as part of President Donald Trump's threats of "economic warfare," signaling a shift away from military action. Treasury Secretary Scott Bessent stated that these broad economic measures aim to reduce the necessity for major military operations against Iran.

The sanctions come after a six-month-long conflict that has resulted in thousands of deaths and strained international shipping through the Strait of Hormuz, which carries about a fifth of all traded oil. Iran's foreign ministry denounced the U.S. sanctions as "economic terrorism," claiming they target ordinary Iranians and constitute crimes against humanity.

Bessent indicated that more details on the sanctions would be provided in a press conference on Monday, vowing that these measures would "collapse this regime." He also hinted at the potential targeting of China for its continued trade with Iran, a move that risks retaliation from China—a major energy importer from the Gulf.