US Treasury chief Scott Bessent said the United States will impose “the toughest sanctions in history” on Iran, a move he suggested would lessen the need for new major military operations.
Bessent promised details next week.
Bessent’s comments on Thursday followed President Donald Trump’s threat a day earlier of “Economic Warfare” and warning of economic consequences against any country that provided “any type of lifeline to Iran.
Iranian Foreign Minister Abbas Araqchi called Trump’s comments an attempt to divert American public opinion from domestic financial problems, including record debt and rising interest rates. China buys more than 80% of Iran’s shipped oil, according to 2025 data from analytics firm Kpler, but engaging in further economic warfare with China, a major exporter to the US including vital rare-earth minerals, risks retaliation against Washington.
The US and Iran have twice announced ceasefire deals, in April and June, aiming to restore the free flow of shipping through Hormuz on a path towards ending the conflict, but both quickly crumbled. “It is going to work in Iran and we are going to collapse this regime.
“I’m not sure why oil has popped up on this,” Bessent told CNBC. “If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart,” he said, using a term referring to military force. Before Bessent spoke, Iran’s foreign ministry said it condemned U.S. economic and trade sanctions, calling them “economic terrorism” that would not “create even the slightest hesitation in Iranians’ determination to safeguard Iran’s independence, dignity and national sovereignty. It is time for our allies and the rest of the world to make a decision,” he said. Earlier reporting noted: US threatens ‘toughest sanctions in history’ on Iran; oil prices surge as Trump warns of ‘economic warfare’ WASHINGTON/DUBAI, Aug 20 (Reuters) – The U.S. will impose “the toughest sanctions in history” on Iran, Treasury Secretary Scott Bessent said on Thursday, a focus on economic measures he suggested would lessen the need for new major military operations against Tehran. Earlier reporting noted: His statement followed President Donald Trump’s threat a day earlier of “Economic Warfare” and warning of economic consequences against any country that provided “any type of lifeline to Iran”. Earlier reporting noted: “I’m not sure why oil has popped up on this,” Bessent told CNBC.
