US Treasury Secretary: New Economic Measures Will Cause Iran to 'Collapse'
Al Jazeera Staff
US Treasury Secretary Scott Bessent warned on August 20 that new economic measures would cause Iran to 'collapse' and urged other nations to join isolation efforts. He cautioned that countries continuing trade with Tehran could face sanctions, but did not clarify if China would be targeted.
US Treasury Secretary Scott Bessent said on August 20 that a new set of economic measures would bring the Iranian government to its knees, urging other nations to join efforts to isolate Tehran.
Speaking to CNBC, Bessent said the United States would impose the “harshest sanctions in history” on Iran, the adversary in a conflict that has lasted nearly six months.
“It’s a double blow. We have the blockade (on Iran) and we will impose the harshest sanctions in history,” Bessent said. “It will have an effect in Iran, and we will bring this regime to collapse.”
He also cautioned the international community that they could face economic sanctions if they continued trading with Iran.
“We will tell them: You are either with us or against us,” Bessent said. “If you insist on doing business with them—whether it’s transferring money, buying oil, or shipping—then the Treasury Department and the US government will use the full force of our power to sanction you.”
He described the US strategy as “the largest coordinated economic isolation effort in the history of the world.”
“It’s time for allies and the rest of the world to make a decision,” Bessent added.
Bessent’s remarks came a day after President Donald Trump announced a “campaign of unprecedented economic pressure” against Iran, threatening “severe consequences” for any country that continued economic cooperation with Tehran.
However, the specific form of these measures—and whether they would apply to major powers like China—remains unclear. When asked if China would be targeted, Bessent declined to answer directly, saying some discussions should remain “private.”
He suggested all nations had a shared interest in isolating Iran, citing the economic fallout from Iran’s closure of the Strait of Hormuz, a critical route for Middle East oil exports.
Iranian forces have restricted traffic through the strait since the war broke out on February 28, when the US and Israel launched their first strikes. Before the war, passage through the waterway was free. Reopening the strait has become a key US objective in ceasefire negotiations, as global oil prices have risen since the conflict began.
The conflict has also strained ties between Washington and its allies, many of whom have refused to take a direct military role. Trump has repeatedly criticized these nations for insufficient support.
On August 20, Bessent reiterated the Trump administration’s stance that defeating Iran would serve the interests of all countries.
“We believe everyone wants the strait reopened and energy prices lowered,” Bessent said. “Remember, China gets 50% of its energy from the Gulf region. So joining this program would be highly beneficial for them.”
The US has long sought to isolate and weaken Iran, even before the current war. On August 20, the Trump administration expanded sanctions on Iran and its allies by adding 10 individuals linked to Hezbollah—the Iran-backed armed group in Lebanon—to the sanctions list. Among them was a Turkish businessman accused of helping transfer funds to Hezbollah.
However, while decades of sanctions have weakened Iran and its allies, critics remain skeptical about their effectiveness in achieving US goals in Iran, such as regime change.
