WASHINGTON, Aug 21 (Alliance News): The United States has threatened to impose what Treasury Secretary Scott Bessent described as the “toughest sanctions in history” on Iran, while warning countries that continue to support Tehran that they could face severe economic consequences.
Bessent’s remarks came a day after President Donald Trump warned of “Economic Warfare” against Iran and threatened unprecedented economic consequences for countries providing financial, commercial or other support to Tehran.
The latest US pressure comes amid a nearly six-month-old conflict involving Iran, the United States and regional countries that has disrupted energy markets and affected shipping through the strategically important Strait of Hormuz.
Bessent said the United States was preparing a major new sanctions package against Iran and would provide further details at a press conference on Monday.
“I’m not sure why oil has popped up on this,” Bessent told CNBC, referring to a rise in oil prices following the latest US threats. He said maximum economic pressure could reduce the need for another major military escalation.
“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.
The US Treasury secretary also referred to a blockade imposed on Iran, saying Washington was combining economic restrictions with measures aimed at limiting Iran’s ability to generate revenue.
“It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history,” Bessent said.
He added that the measures were intended to increase pressure on Tehran and force a change in its policies.
US seeks international support
Bessent also urged US allies and other countries to cooperate with Washington in applying economic pressure on Iran.
“It is going to work in Iran, and we are going to collapse this regime. It is time for our allies and the rest of the world to make a decision,” he said.
The comments raised the possibility of wider economic pressure on countries and companies that continue to trade with Iran.
Trump had warned in a social media post that any country allowing its financial institutions, businesses, airports or government entities to provide what he described as a “lifeline” to Iran would face “TREMENDOUS Economic Consequences”.
The US president did not specify which countries would be targeted or provide details of the measures.
The threat could affect countries that have been involved in diplomatic efforts to end the conflict or maintain economic relations with Tehran.
China rejects US pressure
China has rejected the US approach, calling for a diplomatic solution rather than additional sanctions.
China is particularly important to Iran because it remains the biggest buyer of Iranian oil. According to 2025 data from analytics firm Kpler, China purchases more than 80% of Iran’s shipped oil.
The Chinese embassy in Washington said sanctions and pressure would not 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.
Bessent acknowledged the importance of China’s energy relationship with Iran but urged Beijing to cooperate with Washington.
He noted that China obtains a significant portion of its energy supplies from the Gulf and argued that Beijing would benefit from efforts to restore stability in the region.
Any attempt by Washington to impose sanctions on Chinese entities involved in Iranian oil trade, however, could further increase tensions between the world’s two largest economies.
China is also a major supplier of goods and critical materials to the global economy, including rare-earth minerals that are important to US industries.
Iran condemns sanctions
Iran has strongly rejected the latest US threats.
Iran’s foreign ministry condemned the economic and trade sanctions as “economic terrorism”, saying they would not weaken Tehran’s determination to protect its independence and national sovereignty.
Iran has faced extensive US and international sanctions for decades, particularly since the Islamic Revolution of 1979.
The latest measures would add to the pressure already imposed on the Iranian economy as the conflict continues.
Iranian Foreign Minister Abbas Araqchi accused Trump of attempting to divert attention from economic difficulties inside the United States, including high debt and rising interest rates.
He argued that Washington’s continued reliance on what he described as failed policies would produce further failures and increase tensions with Iran.
Strait of Hormuz remains key
The economic confrontation is closely linked to the Strait of Hormuz, one of the world’s most important energy shipping routes.
Before the conflict, roughly one-fifth of globally traded oil passed through the narrow waterway. Disruptions to shipping have therefore raised concerns about global energy supplies and contributed to increases in oil prices.
The United States and Iran have announced ceasefire agreements twice, in April and June, with the aim of restoring shipping through the Strait of Hormuz and creating conditions for a broader settlement.
Both ceasefires, however, quickly collapsed.
The conflict has killed thousands of people and drawn several Gulf countries into the crisis, while Iran has demonstrated its ability to disrupt shipping through the strategic waterway.
Oil prices rose to their highest level in more than three weeks following the latest US threats.
Pressure on Trump
The continuing conflict is also creating political pressure on Trump at home.
Higher fuel prices and concerns about the economic impact of the war have affected the US administration as Trump faces pressure to bring the conflict to an end.
The economic situation could become politically significant ahead of the US midterm elections in November, when Trump’s Republican Party will seek to maintain control of Congress.
While Trump has repeatedly issued strong warnings against Iran and its supporters, his announcements on social media have not always been implemented exactly as stated.
The latest threat of expanded sanctions, therefore, leaves uncertainty over the precise measures Washington will introduce and how far the United States will go in targeting countries and businesses that continue trading with Iran.
The confrontation now places China in a difficult position, as Beijing seeks to maintain its energy relationship with Iran while also avoiding a wider economic confrontation with Washington.
