Iran faces 'greatest financial offensive ever', says US treasury secretary

US Treasury Secretary Scott Bessent has threatened Iran with the most severe financial offensive ever, suggesting the US-Israel conflict with Iran is nearing its conclusion. Bessent declared the US would sever all economic connections with Iran, branding it an "economic D-Day," and warned that any nation partnering financially with Iran would face isolation.

Iran responded by vowing to halt oil exports from the region should the war persist, according to Reuters. The Iranian regime has also issued a fresh warning, stating that shipping must obtain permission to navigate the Strait of Hormuz, a critical waterway south of Iran, as the flow has been effectively halted since the conflict commenced in late February.

Bessent outlined his threat in an opinion piece for the Financial Times, though he did not specify the exact nature of the economic pressure on Iran. He stated his objective in the piece to sever every economic lifeline supporting the "tyrannical regime" until Tehran stands alone. The US has repeatedly warned Iran throughout the war, with former President Donald Trump even threatening to plunge the "whole civilization" into ruin if Iran failed to agree to a deal ending the conflict and lifting the blockade of Hormuz.

However, Trump's ultimatum was withdrawn after Pakistan's mediation and calls for further diplomacy. The economic repercussions of the Iran war are evident in both the US and globally, with soaring oil prices intensifying concerns about affordability, particularly as gasoline prices surpass $4 per gallon in the US. Brent crude, the global oil price benchmark, was trading at $93 per barrel on Monday.

Bessent also announced earlier that the US government would intervene in bond markets by purchasing additional government debt to stimulate demand and reduce borrowing rates; yet, the announcement's impact was fleeting, as borrowing costs surged once more a day later.