Bessent Vows Unseen Iran Squeeze as Blockade Bites

Treasury Secretary Scott Bessent says the United States is about to hit Iran with economic pressure it has never faced, telling Newsmax on Aug. 13 that measures are coming "as soon as next week."

"It will be a combination of economic isolation like the world has never seen before, and the continued blockade in the Strait of Hormuz that will keep anything from going in or out of the Iranian ports," Bessent said, without elaborating.

President Donald Trump followed on Friday with his own vow to hit Iran hard economically, Reuters reported.

The catch, analysts say, is that the easy targets are gone. Iran is already under a U.S. naval blockade and thousands of sanctions, and most of the remaining levers risk blowing back on the American economy or on relations with Beijing.

What's Left to Hit

Chinese refiners. Bloomberg reports China buys more than 90% of Iran's oil exports; Reuters, citing 2025 data from analytics firm Kpler, puts China's share of Iran's shipped oil above 80%. Much of it is absorbed by independent "teapot" refineries that account for about a quarter of Chinese refining capacity. Washington has already sanctioned some teapots, but sanctions experts told Reuters those refiners are partly immune because they have little exposure to the U.S. financial system.

Chinese banks. Treasury has warned two larger Chinese banks they could face secondary sanctions if Iranian funds were found moving through their systems, but has stopped short of designating them; U.S. officials have not publicly named the banks. Experts say hitting them would chill bigger institutions — and could trigger retaliation from Beijing, including curbs on critical mineral exports, ahead of an expected Trump–Xi Jinping meeting later this year.

Exchange houses. Iran still needs intermediaries — many in countries such as the United Arab Emirates — to convert oil payments, often received in Chinese yuan, into usable currency. Treasury has already sanctioned Iranian exchange houses under Bessent's "Economic Fury" campaign for allegedly laundering billions.

Secondary sanctions and tariffs. Washington could threaten any firm doing even limited business with Iran, the approach Trump took toward North Korea in 2017. That would squeeze companies in Russia, China and U.S. partners such as Turkey. Trump floated 25% tariffs on countries doing business with Iran in January and has not followed through; the Supreme Court struck down the legal basis for such tariffs.

Seizing assets. The U.S. could try to confiscate — not just freeze — Iranian state assets under its jurisdiction, as the Bush administration did after the 2003 Iraq invasion. The pool within U.S. reach may be small, and seizing money held in third countries would require foreign cooperation.

A land blockade. U.S. and Israeli officials have floated cutting off Iran's land borders, which would require help from Iraq, Turkey, Pakistan, Afghanistan, Turkmenistan, Azerbaijan and Armenia. Trump has leverage over Pakistan, which recently sought a $10 billion currency swap line from Treasury, and Turkey, which wants back into the F-35 program.