The United States is preparing to impose what Treasury Secretary Scott Bessent described as the “toughest sanctions in history” against Iran, suggesting the move could reduce the need for further large-scale military action.
Bessent made the remarks on Thursday, a day after President Donald Trump threatened “economic warfare” against Iran and warned that countries providing any form of support to Tehran could face severe economic consequences. Bessent said further details of the sanctions package would be announced next week.
Oil prices climbed to their highest level in more than three weeks following the latest US threats, as Washington seeks to pressure Iran to end the nearly six-month-long conflict that has disrupted energy supplies and shipping across the Middle East.
Asked about the rise in oil prices, Bessent said maximum economic pressure could mean there would be no immediate need for another major military operation. He described the strategy as a combination of a blockade and what he called the toughest sanctions ever imposed on Iran.
The conflict has killed thousands of people, drawn Gulf nations into the crisis and disrupted shipping through the Strait of Hormuz, a key waterway that previously carried around one-fifth of global oil trade.
The US and Iran have announced ceasefire agreements twice, in April and June, with both deals aimed at restoring shipping through the Strait of Hormuz and paving the way towards ending the conflict. However, both ceasefires quickly collapsed.
Bessent said he would provide more information about the new sanctions during a press conference on Monday, adding that Washington intended to put maximum economic pressure on Iran and ultimately force the regime to collapse.
Iran, which has faced severe economic sanctions for almost five decades since the 1979 Islamic Revolution, condemned the latest US measures as “economic terrorism”. Its Foreign Ministry said the sanctions would not weaken the country’s determination to protect its independence and sovereignty.
The latest US threat could also put pressure on China, which accounted for more than 80 per cent of Iran’s seaborne oil purchases in 2025, according to analytics firm Kpler. However, targeting Chinese entities could trigger retaliation against Washington, particularly as China remains a major supplier of rare-earth minerals to the US.
Bessent said discussions with China were better handled privately, while noting that China also depends heavily on energy supplies from the Gulf.
China’s embassy in Washington, meanwhile, said sanctions and economic pressure would not resolve the crisis and called on the parties involved to pursue political and diplomatic solutions.
Trump had earlier warned that any country allowing its financial institutions, businesses, airports or government agencies to provide support to Iran would face “tremendous economic consequences”.
The US president is also facing domestic pressure to bring the conflict to an end, with rising fuel prices weighing on his approval ratings and potentially affecting his party’s prospects in November’s midterm elections.
Iranian Foreign Minister Abbas Araqchi accused Trump of using the threats to divert attention from economic problems in the US, including record debt and rising interest rates.
He also warned that continuing what he described as failed policies would only lead to further setbacks and increase hostility towards Washington.
