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.
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”.
The U.S. 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. 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.
“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 target ordinary Iranians and amount to crimes against humanity. It is time for our allies and the rest of the world to make a decision,” he said. Earlier reporting noted: The United States on Thursday warned allies and China to join President Donald Trump’s new campaign to isolate the Iranian economy, vowing that Washington would “collapse this regime” in Tehran. Earlier reporting noted: Iran branded the US threats as “economic terrorism” and said they would fail.
Earlier reporting noted: Neither Trump nor his treasury chief has set out the measures they are planning against Iran. Omani Foreign Minister Badr Albusaidi, speaking after meeting his Japanese counterpart, said on Thursday that lasting security in the strait required a permanent peace in the region and rejected further escalation. Bessent said he would give more details during a press conference on Monday.
