U.S. Treasury official says economic pressure on Iran may avert further combat operations

Treasury Secretary Scott Bessent told CNBC that the United States' plan to intensify economic pressure on Iran is intended to diminish the need for a major U.S. military response. He said that if the maximum economic pressure is applied, a large-scale kinetic restart is unlikely.

President Donald Trump announced on his social-media platform that the United States will impose severe penalties on any country that provides a “lifeline” to Tehran, calling the move an “economic D-Day” and urging allies to join the effort.

Bessent said the United States aims to create “the greatest coordinated economic isolation in the history of the world” against Iran and will hold a news conference on Monday to outline the details. He warned that countries continuing to do business with Iran, including money transfers, oil purchases, or ship-to-ship transfers, will face full enforcement action by the Treasury and the U.S. government.

"If you insist on doing business with [Iran]… the U.S. Treasury and the U.S. government … will put its full might and force toward enforcing against you," Bessent said.

He described the strategy as a “one-two punch,” pairing the sanctions with an ongoing naval blockade of Iranian ports in the Gulf of Oman.

"It is a one-two punch. We have the blockade, and we are going to have the toughest sanctions in history," he added.

While the Iranian economy has contracted and inflation has surged, some analysts caution that a complete collapse is not certain. Iran continues to disrupt shipping in the Strait of Hormuz, where tanker traffic remains reduced.

The United Arab Emirates announced it would halt all trade with Iran following recent missile strikes, and Iran’s foreign minister warned that “doubling down on failed policies will only bring further defeat—and enmity of Iranians.”