US Treasury Secretary Promises to Cripple Iran's Economy Amid Sanctions Push
By Editor • August 20, 2026 • 2 min read
The US is ramping up its pressure on Iran, with Treasury Secretary Scott Bessent declaring that new sanctions will aim to 'squash' the Iranian economy and lead to the collapse of its regime. Speaking to CNBC, Bessent called for international allies to join in this economic campaign, emphasizing the urgency of the situation.
Bessent's comments follow President Donald Trump’s stern warning that countries providing any form of support to Iran would face severe economic repercussions. While specifics of the impending sanctions were not disclosed, Bessent stressed that the goal is to minimize the need for military intervention.
Since the onset of military actions against Iran earlier this year, tensions have escalated dramatically. Iran retaliated against US and Israeli bases and has largely shut down the vital Strait of Hormuz, which is crucial for global oil and gas transit. This closure has led to significant price fluctuations in the global market.
Despite a ceasefire agreement reached in April and renewed in June, hostilities have persisted, prompting the US to pivot to an extensive economic assault instead of resuming armed conflict. Bessent described this forthcoming economic strategy as the 'greatest coordinated economic isolation' the world has ever seen.
According to Bessent, international businesses engaging with Iran, whether through monetary transfers or oil purchases, could face serious consequences from the US government. More details are expected to be unveiled at a press conference on August 24.
Iran's economy has already been suffering under the strain of longstanding sanctions, with inflation and the cost of living spiraling out of control this year, leading to widespread protests. Official data indicated a staggering 60% rise in basic necessities and a doubling of food prices over a year.
While the US aims to intensify its economic pressure, some in Iran believe that the country’s history with sanctions could allow it to endure the latest challenges. Residents argue that despite the hardships, the regime has shown resilience, and the population has adapted to living under economic constraints.
Source: www.bbc.co.uk
