Bessent Vows Sanctions Will Collapse Iran's Regime

Bessent Vows Sanctions Will Collapse Iran's Regime

The News

Treasury Secretary Scott Bessent said Thursday the Trump administration will use sweeping new sanctions to "collapse" Iran's government — and told American allies they are "either with us or against us."

Speaking on CNBC's "Squawk on the Street," Bessent said the pressure campaign likely removes the need for renewed combat: "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart."

He said the full framework will be laid out at a press conference Monday.

What Bessent Said

Bessent said Treasury will use secondary sanctions to punish countries and companies that keep doing business with Tehran. "If you insist on doing business with them — either transferring money, buying their oil, doing seaborne ship transfers — then the US Treasury and the US government will put its full might and force toward enforcing against you," he said, according to the New York Post.

"It is time for our allies and the rest of the world to make a decision, and we are going to squash the economy of this murderous regime," he added.

He argued the sanctions will "curtail their ability to project power through their proxies" and mean Iran "cannot pay the military," and said Iran is already running substantial food and general inflation.

"It is a one-two punch. We have the blockade, and we are going to have the toughest sanctions in history, and I will tell you this will work," Bessent said. "It worked in Venezuela once we put up the blockade. It is working in Cuba right now, and it is going to work in Iran — and we are going to collapse this regime."

Timeline

Wednesday, Aug. 19:

President Trump posted on Truth Social that Washington will launch the "most crushing economic operation ever taken against any country," calling it an "ECONOMIC D-DAY" and "Economic Warfare and Isolation on an unprecedented scale." He threatened "economic consequences" for "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."

Thursday, Aug. 20:

Bessent went on CNBC to double down, issuing the ultimatum to allies and previewing the secondary-sanctions structure.

Monday:

Bessent is scheduled to detail the full sanctions plan at a press conference.

Reactions

Iranian Foreign Minister Abbas Araghchi dismissed the threats as a diversion from what he called America's own crisis of "unprecedented debt & surging interest costs," citing an article noting US national debt has crossed $40 trillion, IBTimes reported. "Doubling down on failed policies will only bring further defeat—and enmity of Iranians," Araghchi said. "US economic terrorism threatens global economy and sovereignty worldwide."

Inside the administration, the campaign has moved the Treasury secretary to the center of the war. A senior Trump official told Politico Playbook's Dasha Burns that Bessent is "more involved" in the war effort than Defense Secretary Pete Hegseth, AlterNet reported.

What's Next

Monday's press conference is the marker to watch: it should show which transactions, sectors and third countries Treasury intends to hit, and how aggressively it plans to enforce against allied firms.

The open questions are which governments comply, which absorb US penalties, and whether economic pressure alone can force an outcome after roughly six months of unresolved conflict.

More

Bessent's "one-two punch" pairs the sanctions with the existing naval blockade. Axios reported Thursday, citing officials familiar with the matter, that US forces are escorting tankers through a channel along the Omani coast at night — between 15 and 20 vessels in and out, about 10 million barrels a day — despite Iran's attempt to close the Strait of Hormuz. "We have been controlling the southern lane of the Strait of Hormuz for two months now," one official told Axios. "The Islamic Revolutionary Guard Corps can be a nuisance, but they don't control the strait. We do."

Reporting: CNBC, New York Post, IBTimes, AlterNet.

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