The Trump administration is preparing a major new economic campaign against Iran, with Treasury Secretary Scott Bessent warning US allies and China that countries continuing to support Tehran could face economic consequences.
The move comes as President Donald Trump seeks to intensify pressure on Iran following months of military strikes and a US blockade that have disrupted the country’s oil exports.
Bessent described the planned campaign as an unprecedented effort to isolate Iran economically and weaken its ability to support regional proxies.
“This is going to be the greatest coordinated economic isolation in the history of the world,” Bessent was quoted as saying by CNBC.
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He said the message to US allies was effectively: “You are either with us or against us.”
“It is time for our allies and the rest of the world to make a decision,” Bessent said. “We are going to squash the economy of this murderous regime.”
CNBC reported that he later made the administration’s objective clear, saying: “We are going to collapse this regime.”
Trump has separately described the planned measures as an “ECONOMIC D-DAY” against Iran. In a social media post, he warned that countries allowing their financial institutions, businesses, airports or government entities to provide “any type of lifeline” to Iran would face “TREMENDOUS Economic Consequences”.
Trump has also urged US allies to help isolate, and defeat, the Iran threat.
According to the report, Washington is seeking to restrict Iran’s access to exchange houses, cash transfers, swap lines, ship registries, front companies and other channels that it says are being used to support Iranian oil exports.
China is likely to be a major focus of the campaign because it buys a large share of Iran’s crude exports. Asked whether Washington could impose measures on China over its trade with Iran, Bessent did not provide details.
“Many conversations are best to have in private,” he said, while urging Beijing “to get with the program.”
Bessent said China had a strong interest in restoring normal shipping through the Strait of Hormuz because of its dependence on Gulf energy supplies.
ALSO READ: ‘US Crisis Being Diverted’: Iran Warns Trump Of Consequences After Economic D-Day Threat
“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.”
Bessent also suggested that maximum economic pressure 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, while adding: “I will emphasize that is for now.”
Bessent is scheduled to hold a press conference on August 24 to outline the administration’s planned measures.
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