The United States has announced plans to impose what Treasury Secretary Scott Bessent described as the “toughest sanctions in history” on Iran, as Washington steps up economic pressure on Tehran after months of conflict.
Bessent said the new sanctions would reduce the need for another major military operation against Iran, adding that the US would provide more details on the package at a press conference on Monday.
His comments followed President Donald Trump’s warning that countries or entities providing any form of economic lifeline to Iran would face “tremendous economic consequences.”
“I’m not sure why oil has popped up on this,” Bessent told CNBC, arguing that maximum economic pressure could mean there would be no need for a large-scale military restart.
The latest move comes as the nearly six-month-old conflict has killed thousands of people, drawn in Gulf countries and disrupted global energy markets.
Iran has also demonstrated its ability to restrict shipping through the Strait of Hormuz, a vital waterway through which about one-fifth of the world’s traded oil passed before the conflict began in February.
The United States and Iran have announced ceasefire agreements twice, in April and June, but both arrangements quickly collapsed.
US targets Iran’s economy
Iran has faced extensive US and international sanctions for nearly five decades, dating back to the 1979 Islamic Revolution.
Iran’s Foreign Ministry condemned the latest US measures, describing the sanctions as “economic terrorism” and insisting they would not weaken the country’s determination to protect its independence, dignity and sovereignty.
Bessent said the new measures would work alongside the US naval blockade of Iran, which Washington imposed in April and paused for a month in mid-June.
“It is a one-two punch. We have the blockade, and we are going to have the toughest sanctions in history,” he said.
Bessent also said the US intended to put enough economic pressure on Iran to force political change.
“It is going to work in Iran and we are going to collapse this regime,” he said, while urging US allies and other countries to support Washington’s approach.
China caught in the middle
China could become a major factor in the new sanctions strategy because it remains Iran’s biggest buyer of shipped oil.
According to 2025 data from analytics firm Kpler, China bought more than 80 per cent of Iran’s shipped oil.
Bessent suggested Washington wanted Beijing to cooperate with the sanctions effort, but acknowledged that targeting China could create problems for the US because the two countries are major trading partners.
“Many of these conversations are best to have in private,” he said when asked whether Washington could impose measures on China for doing business with Iran.
Bessent also argued that China has a strong interest in maintaining energy supplies from the Gulf, saying about half of China’s energy comes from the region.
China’s embassy in Washington rejected the pressure campaign, saying sanctions would not help resolve the crisis.
“China calls on the relevant parties to take responsible actions and resolve the issue through political and diplomatic means,” an embassy spokesperson said.
Trump threatens countries helping Iran
Trump had warned on Wednesday that his administration was prepared to launch “Economic Warfare and Isolation on an unprecedented scale” against Iran.
He said any country whose financial institutions, businesses, airports or government agencies provided any form of support to Iran would face severe economic consequences.
The warning could affect some US allies that have been involved in efforts to mediate an end to the conflict.
However, Trump is also facing pressure at home to bring the war to an end. Rising fuel prices have affected his approval ratings and could become an issue for his Republican Party ahead of the November midterm elections.
Iranian Foreign Minister Abbas Araqchi accused Trump of using the Iran crisis to divert attention from economic problems in the United States, including record debt and rising interest rates.
Araqchi said Washington’s continued reliance on what he described as failed policies would only produce further failures and deepen opposition among Iranians.
The full details of the new US sanctions are expected to be announced by Bessent on Monday.
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