Iran Faces Fresh Sanctions Threat as Oil Prices Rise
WASHINGTON: The United States will impose what Treasury Secretary Scott Bessent called the “toughest sanctions in history” on Iran, as Washington increases economic pressure on Tehran and urges its allies, including China, to cooperate.
Speaking to CNBC on Thursday, Bessent said he would announce further details at a press conference on Monday. He described the policy as a “one-two punch,” combining a blockade on Iran with sweeping new sanctions.
“It is going to work in Iran and we are going to collapse this regime,” Bessent said, according to Reuters.
His remarks came a day after President Donald Trump warned that any country providing Iran with “any type of lifeline” could face economic consequences. The US is seeking to bring an end to a war it began alongside Israel nearly six months ago.
Bessent said oil markets may be misunderstanding the meaning of the new economic pressure. Oil prices rose to their highest level in more than three weeks on Thursday, but he suggested that tougher sanctions could reduce the likelihood of a major return to large-scale military action.
The Treasury secretary also called on China to support efforts to reopen the Strait of Hormuz, a vital route for global energy supplies. He said Beijing had a strong interest in restoring stability because China receives about half of its energy from within the Gulf region.
“We are confident that everyone wants the Strait reopened and for energy prices to come back down,” Bessent said.
China’s embassy in Washington did not immediately comment. China purchases more than 80 percent of Iran’s seaborne oil exports, according to 2025 data from analytics company Kpler. Any broader US economic action against China could risk retaliation, particularly because China remains a major supplier of rare-earth minerals.
Iran has endured severe US sanctions for decades. Foreign Minister Abbas Araqchi dismissed Trump’s remarks as an effort to distract Americans from domestic economic concerns, including rising debt and interest rates.
