Iran faces 'economic D-Day', US Treasury Secretary warns

The US Treasury Secretary, Scott Bessent, has issued a stern warning to Iran, threatening it with an "economic D-Day" and severing all financial ties with the country. This comes as the US and Israel wage war against Iran, with Bessent claiming this marks the endgame of the conflict. Iran has dismissed Bessent's threats, warning it will shut down all oil exports from the region if the war continues.

The Iranian regime also issued a new warning to shipping vessels, stating they must not pass through the Strait of Hormuz without its permission, as one-fifth of the world's oil and gas typically passes through this waterway. Bessent's comments were published in an opinion piece for the Financial Times, where he did not detail the specific economic pressure on Iran, stating he would elaborate in a press conference later that day.

The US has made numerous threats to Iran throughout its war with the country, including former President Trump's claim that "a whole civilization will die tonight" unless Iran agrees to end the war and unblock the Strait of Hormuz. However, this threat was withdrawn after Pakistan intervened and called for more diplomacy. Iran has already been subjected to tough economic sanctions from the US, following former President Obama's nuclear deal in 2015, which was abandoned by Trump in 2018.

During Joe Biden's presidency, attempts were made to reinstate the Obama-era deal, but these were unsuccessful. In April, the Trump administration launched sanctions on foreign banks and firms doing business with Iran after it became clear its military operations had not succeeded in overthrowing the regime.