The United States is preparing to impose what Treasury Secretary Scott Bessent calls the “toughest sanctions in history” on Iran, shifting Washington’s focus further toward economic pressure as it seeks to avoid another major military escalation.
Bessent said the new measures would form part of a broader campaign to isolate Iran economically. He is expected to provide details of the sanctions at a press conference on Monday.
“It is a one-two punch. We have the blockade, and we are going to have the toughest sanctions in history,” Bessent said.
The announcement followed President Donald Trump’s warning that Washington was preparing “Economic Warfare and Isolation on an unprecedented scale” against Iran and countries that provide it with financial or commercial support.
Tehran has dismissed the new pressure campaign, with Iranian Foreign Minister Abbas Araghchi accusing Washington of relying on policies that have failed in the past.
Araghchi also argued that the U.S. was using the campaign to divert attention from its own economic challenges, including high debt and rising interest costs.
“Doubling down on failed policies will only bring further defeat and enmity of Iranians,” Araghchi said.
Iran has faced U.S. sanctions for decades, raising questions over how much additional pressure the new measures can exert on an economy already heavily restricted.
The confrontation is also having an immediate impact beyond Iran and the United States. Oil prices climbed sharply following Washington’s announcement, with Brent crude reaching around $94.71 a barrel before settling near $93.80.
The rise reflects concerns over continued disruption around the Strait of Hormuz, a crucial energy route through which a significant share of the world’s oil normally passes.
The latest U.S. measures therefore put the spotlight not only on Iran’s economy, but also on the potential consequences for global energy prices, international trade and the wider Middle East conflict.
With the details of the sanctions still to be announced, markets and U.S. allies will be watching closely to see whether Washington’s economic strategy can force Tehran toward an agreement—or further deepen the confrontation.
