US Treasury Announces Plans for ‘Toughest Sanctions in History’ on Iran

US Treasury Secretary Scott Bessent said Thursday that Washington will impose its harshest sanctions package yet on Iran, suggesting the move could reduce the likelihood of renewed large-scale military action. Full details are expected at a press conference on Monday.

Rising Pressure Campaign

The announcement follows President Donald Trump’s warning a day earlier of sweeping “economic warfare,” cautioning that any country offering Iran financial support would face serious consequences. Bessent described the strategy as a “one-two punch,” combining a naval blockade with the new sanctions package, adding that the approach is intended to weaken Iran’s government.

Oil Markets React, China Pushback

Oil prices climbed to a three-week high following the threats, as the ongoing conflict continues to disrupt shipping through the Strait of Hormuz. Bessent also called on China, which purchases the majority of Iran’s exported oil, to reduce its involvement, though he acknowledged targeting Beijing directly carries risks given trade ties. China’s embassy in Washington responded that sanctions do not resolve underlying issues and urged diplomatic solutions.

Iran’s foreign ministry condemned the sanctions as “economic terrorism,” stating they would not weaken the country’s resolve.