US Treasury Secretary Scott Bessent has called on US allies to make a decision on whether they will support Washington's efforts to "squash" the Iranian economy. His remarks follow US President Donald Trump's statement on Truth Social that countries offering "any type of lifeline" to the Islamic Republic's regime will face "tremendous economic consequences".
Mr Bessent did not provide details on the specific measures Trump's team intends to implement, but he emphasised the message to US allies: "You are either with us or against us." He told CNBC that the new economic penalties would form part of "the greatest coordinated economic isolation in the history of the world."
Mr Bessent warned that if countries insist on doing business with Iran, such as transferring money or buying oil, the US Treasury and government will enforce against them. He also suggested that this pressure campaign could reduce the need for a "large-scale kinetic restart" of the conflict.
The Iranian economy has been under international sanctions for decades, leading to struggles including weeks of protests earlier this year over the cost of living and inflation. Official figures show that basic necessities increased by an average of 60% and food prices doubled in the 12 months to February 2026.
An Iranian businessman told Middle East Lifeline that the prospect of fresh sanctions is making global companies reconsider potential losses from investing in Iran. However, some Iranian residents expressed doubt that new penalties would significantly impact the regime's longevity, citing years of experience with sanctions.