U.S. vows ‘economic D-Day’ as Iran threatens to halt all oil exports

The United States is poised for a "greatest financial offensive" against Iran, with Treasury Secretary Scott Bessent describing the new sanctions as the single most aggressive financial campaign ever directed at an adversary. President Trump has dismantled Iran's military capabilities and destroyed nearly all its military factories and nuclear program, marking the beginning of the endgame.

Bessent stated, "We are now entering the endgame." The Islamic Republic has relied on the calculus that Iranian retaliation is certain while American enforcement is negotiable. Bessent warned that the President has unleashed every agency, authority, and action previously unconsidered, aiming to sever all economic lifelines supporting the tyrannical regime until Tehran stands alone.

Iran has responded by threatening to halt oil exports from the Persian Gulf if the economic war persists. The escalation occurs as direct military action between the US and Iran has paused, with neither side returning to significant confrontations or resuming six-month negotiations to end the conflict. The Strait of Hormuz, a strategic chokepoint in the Persian Gulf, remains a focal point of the threat.

Iranian officials warned that halting oil exports through the Strait could trigger a wider confrontation, as Iran possesses missile and drone capabilities that could threaten Gulf states and shipping. Disruption in the Strait has already caused tanker traffic to near a standstill and driven up global fuel prices.

In response, Bessent called on China to cooperate with the US, citing China's reliance on Gulf oil imports for half of its total demand. Beijing has rejected the pressure campaign, with a spokesperson for the Chinese embassy in Washington stating that sanctions and pressure would not resolve the dispute and calling for diplomacy instead.

The new measures are expected to hit an Iranian economy already weakened by years of sanctions, high inflation, a falling currency, energy shortages, and structural problems. Additionally, diplomatic efforts to revive negotiations between the US and Iran have been limited, with the last direct talks held in Switzerland in June. Qatar, Pakistan, and Turkey have since attempted to mediate the crisis.

Pakistan's army chief, Asim Munir, is set to visit Tehran on Monday to discuss the threat of fresh US sanctions with Iranian officials.