US Treasury Pushes Global Blockade on Iran’s Economy

Sun Sep 06 2026 02:20:59 GMT+0000 (Coordinated Universal Time)

US Treasury urges allies to back plans to crush Iran's economy as Trump threatens heavy sanctions.

Treasury Secretary Scott Bessent called on partners to support a powerful economic embargo against Iran, framing it as a move to "squash" the regime. He echoed President Trump’s warning that countries providing lifelines to Tehran would face dire consequences. The plan, part of Operation Economic Fury, aims to isolate Iran’s finances and reduce its war‑fighting budget. Iranian businesses warn they will adapt, while residents hope the sanctions will not bring the regime to its knees.

‘We are going to squash the economy of this murderous regime,’ said Treasury Secretary Scott Bessent as he addressed global partners. He urged a united front, telling them they must decide whether to support Washington’s clamping‑down strategy.

President Trump criticized any country that offers even a slight lifeline to Iran, warning of “tremendous economic consequences.” The Treasury’s message follows a series of new sanctions launched under Operation Economic Fury, designed to choke Tehran’s revenue streams and disrupt its oil exports.

Impact on Iran

In the last 12 months, prices of essentials have risen 60% and food prices have doubled.
Iran has endured years of sanctions, but the latest intensified effort is aimed at forcing a political change without large‑scale military conflict.

Global businesses are wary; one Iranian entrepreneur said if every trading partner faces sanctions, he must reconsider deals to avoid losing money.

Many Iranians, however, believe the economy can weather the storm. Residents in Khuzestan told BBC that while there may be short‑term pain, the regime will find ways to keep the economy running.

A U.S. Treasury press conference will reveal more details on 24 August.