US Treasury Secretary Scott Bessent said Washington will impose the toughest sanctions in history on Iran, following President Donald Trump's threat of "economic warfare"; the announcement lifted oil prices to a three‑week high, underscoring market sensitivity to escalating pressure on Tehran.
Bessent made the remarks on Thursday, promising a detailed package next week and linking the sanctions to the naval blockade imposed in April. Trump had tweeted the day before that any country providing a lifeline to Iran would face "tremendous economic consequences." Iran’s foreign ministry labeled the move "economic terrorism," while China’s foreign ministry warned that unilateral sanctions lack UN authority.
The sanctions aim to force Iran to end its six‑month war that has stranded millions of barrels and disrupted Hormuz shipping, while the oil price rally reflects investor worry about supply constraints. Beijing, which imports over 80% of Iran’s oil, may face retaliation if pressured to join the campaign, raising US‑China tension.
Iranian officials argue the US policy is a distraction from domestic financial problems, and Chinese officials contend that sanctions will not resolve the conflict, highlighting a clear disagreement over the efficacy and legality of the proposed measures.