Scott Bessent did not say whether China or other countries could be targeted in an effort to isolate Tehran economically.
Published August 20, 2026
U.S. Treasury Secretary Scott Bessent said the new package of economic measures would “collapse” the Iranian government and called on countries to join the effort.
Bessent told news service CNBC on Thursday that the United States would apply the “toughest sanctions in history” against Iran, an adversary in the nearly six-month war.
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“It’s a one-two punch. We’re blocking (Iran) and we’re going to impose the toughest sanctions in history,” Bessent said. “It will work in Iran, and we will bring down this regime.”
He also warned members of the international community that they too could face economic penalties if they continue to trade with Iran.
“We’re going to go to them and say, ‘You’re either with us or you’re against us,'” Bessent said. “If you insist on doing business with them — whether it’s sending money, buying oil, or shipping by sea — the U.S. Treasury and the U.S. government will do everything in their power to enforce against you.”
He called the U.S. strategy “the greatest coordinated economic isolation in the history of the world.”
“It’s time for our allies and the rest of the world to make a decision,” Bessent added.
His comments followed U.S. President Donald Trump’s announcement the day before that he promised “the most devastating economic operation ever waged against any country” against Iran.
He also threatened “incalculable consequences” for any country that continues economic relations with Iran.
However, it remains to be seen what form such penalties would take and whether they would apply to a country as powerful as China.
Asked whether China would be a target, Bessent on Thursday declined to give a direct answer, saying some conversations are best held “in private.”
He suggested that all countries should share an interest in isolating Iran, citing the economic impact of Iran closing the Strait of Hormuz, a key route for Middle Eastern oil exports.
Iranian forces have restricted access since the war began on February 28, when the United States and Israel launched the first salvo of attacks.
Before the war, traffic flowed freely through this waterway. Since the start of the war, reopening the strait has been a major U.S. goal in ceasefire negotiations as global oil prices have risen.
The conflict has also fueled tensions between the United States and its allies, many of whom have refused to directly participate in the war. President Trump has repeatedly accused these countries of not providing enough aid.
Bessent on Thursday reiterated the Trump administration’s position that defeating Iran will benefit countries around the world.
“I’m sure everyone wants the Strait reopened and energy prices to fall,” Bessent said. “Keep in mind that the Chinese get 50 percent of their energy from within the Gulf, so participating in this program will be a great contribution for them.”
The United States has long sought to isolate and weaken Iran, even before the current war began.
On Thursday, for example, the Trump administration expanded sanctions against Iran and its allies and named 10 individuals associated with the Iranian-backed Lebanese group Hezbollah.
Among the 10 people sanctioned was a Turkish businessman charged with helping funnel money to Hezbollah bases.
But while decades of sanctions have weakened Iran and its allies, critics doubt their effectiveness in achieving U.S. priorities in Iran, such as regime change.
