Bessent vows unprecedented economic isolation of Iran

U.S. Treasury Secretary Scott Bessent declared on Thursday that Washington will impose economic measures against Iran of a severity "never seen in the history of economic isolation on a country," warning of further announcements next week as the administration escalates pressure on Tehran amid a months-long standoff over the Strait of Hormuz.reuters

"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 in an interview on Newsmax's Fox Corporation ↘ 0.63% "Rob Schmitt Tonight" program.jpost+1

Hormuz Standoff Intensifies

The announcement marks a hardening of U.S. strategy after earlier diplomatic efforts to negotiate a reopening of the strait faltered. In early August, Bessent had expressed optimism that a deal with Iran to reopen the waterway was possible within days. Those talks appear to have collapsed, with Iran's parliament reviewing a plan to ban U.S. and Israeli ships from the strait and impose tolls of up to 7% of cargo value on other commercial vessels.globalnation.inquirer+1

A senior Islamic Revolutionary Guards Corps official, Hossein Taeb, said Thursday that the Strait of Hormuz remains "under the management and control of the Islamic Republic," directly contradicting President Trump's claim that Washington has "total control" over the waterway.fxstreet

Escalating Tensions in the Gulf

The rhetoric comes against the backdrop of continuing Iranian attacks on commercial shipping. The UAE last week accused Iran of targeting an ADNOC tanker with a missile while it transited the strait, calling the incident an act of piracy. ADNOC said 15 of its vessels had been attacked since the start of the conflict, killing one crew member and injuring 20 others.aljazeera+1

The strait has been largely contested since the U.S. and Israel launched an air campaign against Iran in late February 2026, with Iran responding by restricting passage through the critical chokepoint that handles a large share of global seaborne oil trade.wikipedia

Vice President JD Vance said Thursday he is confident the U.S. will emerge from the conflict in a stronger position, particularly regarding Iran's nuclear program and fuel prices for Americans. Details of the new economic measures are expected next week.fxstreet