Bessent unveils plan to sever Iran access to global economy

Magdalena Del Valle and Yash Roy, Bloomberg News on Aug 24, 2026

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WASHINGTON — Treasury Secretary Scott Bessent announced what he called an “unprecedented” U.S. campaign to sever Iran from the global economy, warning that any state doing business with the country risks facing U.S. sanctions.

“We are launching an economic onslaught against Iran’s financial connections around the globe,” Bessent said at a news conference in Washington. He called the move “economic asphyxiation of this regime.”

Bessent said President Donald Trump is calling world leaders with “specific requests to cease their interactions with the regime.” He said countries have what he called a defined timeline to shut down economic cooperation with Iran, and if they don’t, Treasury will act unilaterally.

Bessent said the United States was focusing on five of Iran’s “most vital lifelines,” including digital assets, technology, gold, aviation and shipping. But he declined to set a timeline for U.S. action or say what specifically the U.S. would do.

While the move might further isolate Iran from the global economy and some of its trading partners, it is unclear whether it will be enough to get Tehran to capitulate to U.S. demands and loosen its stranglehold on the vital Strait of Hormuz. Iran has weathered decades of U.S. sanctions, and many of the most obvious targets for American economic pressure have already been hit.

In April, Bessent had announced what he called “Economic Fury” against Iran and warned that the administration was prepared to deploy secondary sanctions against foreign financial institutions “that continue to support Iran’s activities.”

Asked on Monday if the U.S. was prepared to cut off major Chinese banks for facilitating trade with Iran, Bessent said “no one is above the reach of U.S. sanctions.” He didn’t mention China — or any other country — by name, saying the best way to engage was through quiet diplomacy.