The United States is preparing a sweeping new economic campaign against Iran, with Treasury Secretary warning allies and China that they must support Washington’s efforts or face consequences.
The escalation comes as President after months of military strikes and a US blockade that have disrupted Iranian oil exports.
Bessent vows to ‘collapse’ Iranian regime
said Washington was preparing what he described as an unprecedented coordinated campaign to isolate Iran economically.
Quick answers to key questions
What is Trump’s ‘Economic D-Day’ plan against Iran?⌵
Trump’s ‘Economic D-Day’ plan involves launching an unprecedented economic campaign aimed at isolating Iran by imposing severe penalties on countries that support Tehran financially or commercially.
Why is Trump increasing economic pressure on Iran now?⌵
Trump is escalating economic pressure due to difficulties in the US campaign against Iran, aiming to increase the costs of resistance without expanding military action and to compel Tehran to negotiate.
How could Trump’s economic measures impact Iran’s economy?⌵
Trump’s measures could significantly worsen Iran’s economic situation by restricting its access to international financial networks, further lowering oil exports, and increasing inflation, thereby intensifying economic pain.
What consequences could China face under Trump’s economic campaign against Iran?⌵
China, being a major buyer of Iranian crude, may face severe economic consequences if it continues to support Iran, as Trump’s campaign aims to pressure countries into isolating Tehran economically.
Should other countries comply with Trump’s demands regarding Iran?⌵
Other countries are urged to comply with Trump’s demands to avoid ‘tremendous’ economic repercussions, leading them to either support the US campaign or risk facing penalties for doing business with Iran.
“This is going to be the greatest coordinated economic isolation in the history of the world,” Bessent was quoted as saying by CNBC.
He said the message to US allies was effectively: “You are either with us or against us.”
Bessent said the objective was to weaken Iran’s ability to project power through regional proxies.
“It is time for our allies and the rest of the world to make a decision,” he said. “We are going to squash the economy of this murderous regime.”
He later made the administration’s objective explicit, saying: “We are going to collapse this regime.”
Trump announces ‘ECONOMIC D-DAY’
, calling his planned measures an “ECONOMIC D-DAY” against Iran.
The that they could face severe economic consequences.
“ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences,” Trump said in a social media post.
Trump also called on US allies to help “isolate, and defeat, the Iran threat.”
His administration has demanded that countries cut off Iran’s access to exchange houses, cash transfers, swap lines, ship registries, front companies and other channels allegedly used to facilitate oil exports.
China comes under pressure
China is likely to be at the centre of Washington’s campaign because it buys the bulk of Iran’s crude exports.
Asked whether the US could target China over its trade with Iran, Bessent declined to provide details.
“Many conversations are best to have in private,” he said, while urging Beijing “to get with the program.”
Bessent argued that China has a strong interest in ending the disruption around the Strait of Hormuz because of its dependence on Gulf energy supplies.
“We are confident that everyone wants the Strait (of Hormuz) reopened, and for energy prices to come back down,” he said.
“Keep in mind that the Chinese get 50% (of their) energy from inside from the Gulf. So it would do them a big service to get with the program.”
US says economic pressure could limit military escalation
Bessent suggested that the expanded sanctions campaign could reduce the immediate need for another major US military offensive against Iran.
“If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart,” he said.
However, he added a qualification: “I will emphasize that is for now.”
Bessent is scheduled to hold a press conference on Monday (August 24) to explain the administration’s planned measures.
Trump targets Iran’s economic lifelines
Trump’s warning represents an effort to broaden the US campaign beyond Iran itself and target countries and companies that continue to facilitate Tehran’s economy.
The has not specified exactly what new penalties will be introduced, raising questions over how much additional pressure Washington can impose after years of sanctions on Iran.
Targeting Iranian oil sales could prove particularly contentious because China is the main buyer of Iranian crude.
