Iran war latest: US poised to announce ‘economic D-Day’ against Tehran

US Treasury Secretary Scott Bessent announced plans to economically cripple Iran, expanding secondary sanctions and warning of severe repercussions for nations that do not join the pressure campaign. The US is targeting Iran's financial connections worldwide, vowing to hold everyone accountable in an "economic asphyxiation" of the regime.

The Treasury Department has mapped Iran's oil smuggling and evasion networks, with Washington working to target sources of Iran's illicit revenue. Countries refusing to participate in the sanctions regime would share in Iran's isolation, according to Bessent. US President Donald Trump is contacting world leaders to cease interactions with Tehran.

Iranian foreign ministry spokesman Esmaeil Baqaei warned that involvement would have consequences, and the Treasury Department has issued determinations against five critical sectors used by the Iranian regime to sustain its economy. Bessent emphasized that anyone facilitating money laundering for Iran would be removed from the US dollar system, with no one being above US sanctions.

The economic blockade has already reduced Iran's oil exports via the Strait of Hormuz from two million barrels a day pre-war to 0.4 million barrels by mid-August, with the country under harsh international sanctions for decades. As the conflict continues, Iranian President Masoud Pezeshkian admitted to facing numerous societal problems, while President Pezeshkian suggested ending the war now, given Iran's position of power and dignity.

Diplomatic efforts to resolve the conflict persist, with Pakistan's army chief visiting Iran and Omani Foreign Minister Badr al-Busaidi scheduled to arrive in Tehran.