US treasury chief threatens Iran with sweeping new economic crackdown

The United States Treasury Secretary has warned Iran of what he called the single greatest financial offensive ever launched against the country, declaring that the ongoing US and Israeli military campaign against Tehran is entering its final stage. Scott Bessent said Washington intends to cut off all economic ties with Iran in what he described as an economic D Day, adding that any nation continuing financial dealings with Tehran would face isolation as well.

Bessent’s warning follows a pattern of shifting positions and extended deadlines from the Trump administration regarding previous threats issued against Iran. Tehran dismissed his latest comments and said it would halt all regional oil exports entirely if the conflict continues, according to a news agency report. Iranian authorities also issued a fresh warning that vessels attempting to pass through the Strait of Hormuz without permission would face consequences.

The strait, located south of Iran, typically carries roughly one fifth of global oil and gas supplies, but Iran has effectively blocked much of that flow since the conflict began in late February.

Bessent outlined his threat in an opinion piece published in a major financial newspaper, though he offered few specifics on what the economic pressure would actually involve. He is expected to detail the plan further during a press conference scheduled for Monday afternoon in Washington. In the piece, he wrote that the American objective is to sever every economic lifeline sustaining what he called the tyrannical Iranian regime until Tehran stands completely isolated.

The latest threat adds to a string of warnings the United States has issued throughout its conflict with Iran. President Donald Trump said in April that an entire civilization would perish overnight unless Iran agreed to a deal ending the war and reopening the Strait of Hormuz, a statement Washington later softened after Pakistan intervened as a mediator and pushed for renewed diplomacy.

The economic fallout from the conflict continues to ripple across the United States and the wider world. Rising oil prices have intensified concerns about the cost of living, with gasoline and diesel prices running well above levels seen a year earlier. In the United States, gasoline prices have climbed past four dollars a gallon, and affordability has become one of the top issues for American voters heading into November’s midterm elections. Brent crude, the global benchmark for oil prices, traded at 93 dollars a barrel on Monday.

Bessent announced last week that the US government would intervene directly in bond markets, buying back additional government debt in an effort to boost demand and lower borrowing costs. The effect proved short lived, however, as long term borrowing costs climbed back up within a day of the announcement.

Iran already operates under heavy economic sanctions imposed by the United States. Former President Barack Obama and several allied nations reached an agreement with Tehran in 2015 that lifted many of those sanctions in exchange for limits on Iran’s nuclear program. Trump withdrew the United States from that agreement in 2018, calling it fundamentally flawed, and reinstated the full range of American sanctions against Iran. His successor, Joe Biden, made some attempts during his presidency to revive the original agreement, but those efforts ultimately failed to produce a new deal.

In April of this year, the Trump administration imposed a fresh wave of sanctions targeting foreign banks and companies conducting business with Tehran, after months of military operations failed to force the Iranian government toward surrender.

The latest escalation in economic pressure comes as the broader conflict shows few signs of resolution, with both sides continuing to test each other’s resolve through military strikes and financial warfare alike. Analysts note that Iran’s willingness to restrict oil flows through one of the world’s most critical shipping corridors has already reshaped global energy markets, and further American economic measures could deepen the strain on both Tehran and the countries that continue trading with it.