US Treasury Chief Warns of Unprecedented Sanctions to Collapse Iran's Economy

Washington has escalated its war of words with Tehran, with US Treasury Secretary Scott Bessent vowing to unleash the "greatest coordinated economic isolation in the history of the world" against Iran. In an interview, Bessent asserted that the combination of a naval blockade and the toughest-ever sanctions would effectively "squash" Iran's economy and lead to the collapse of its government.

Bessent framed the campaign as a stark ultimatum to the international community, stating that allies must decide whether they are "with us or against us." He warned that any nation or company continuing to do business with Tehran—whether through money transfers, oil purchases, or ship-to-ship transfers—would face the full enforcement might of the US Treasury and government.

The Treasury Secretary dismissed skepticism about the effectiveness of such measures, pointing to what he described as successful applications in Venezuela and Cuba. He argued that crippling Iran's economy would curtail its ability to fund proxies and pay its military, exacerbating existing food and general inflation within the country.

Bessent also touched upon global energy markets, suggesting that oil traders are misreading the situation. He noted that while the US maintains control of the Strait, the pressure campaign is designed to force a reopening of vital shipping lanes. He specifically highlighted that China, which sources a significant portion of its energy from the Gulf, would benefit from aligning with US policy.

Iranian Foreign Minister Abbas Araghchi swiftly rejected the threats, labeling them "failed policies" that would only foster more hostility among Iranians. His remarks came shortly after President Donald Trump promised "crushing economic measures" and "Economic Warfare and Isolation on an unprecedented scale." In a social media post, Araghchi accused Washington of using the threats to distract from domestic financial problems, calling the US approach "economic terrorism" that endangers global stability and national sovereignty.