Washington is preparing to implement an “unprecedented” package of economic isolation measures against Iran, with an announcement expected next week. US Treasury Secretary Scott Bessent revealed the plans, indicating a strategy combining new financial sanctions with an ongoing naval blockade of the critical Strait of Hormuz.
Intensifying Pressure on Tehran
The move comes as the Trump administration seeks to escalate financial pressure on Iran, particularly as ceasefire negotiations remain deadlocked. On Thursday, the US affirmed its capability to maintain an indefinite naval blockade of the Strait of Hormuz, a vital waterway through which approximately one-fifth of the world’s oil and gas shipments pass, despite concerns over global oil supply and escalating regional tensions.
Speaking to Newsmax, Bessent stated, “Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation in a country.” He emphasized that the strategy involves both economic isolation and a sustained blockade to halt all movement in and out of Iranian ports.
Iran's Economic Strain and Geopolitical Standoff
Iran’s economy has already suffered significantly from the conflict, experiencing widespread destruction of industrial capacity and severe limitations on crude exports due due to the US blockade. Previous international sanctions have failed to alter Tehran’s nuclear ambitions or its stance on controlling the Strait of Hormuz, yet the country faces mounting economic challenges.
President Trump has reportedly renewed efforts to increase economic pressure on Iran, navigating concerns about munitions shortages and a reluctance to expand military operations. He noted Iran’s high inflation and financial difficulties, telling Axios he was “low-keying it” with Tehran. Domestically, Trump faces pressure to conclude the unpopular war, with high fuel prices impacting his approval ratings ahead of upcoming midterm elections.
Disputed Control of a Strategic Waterway
Both the US and Iran claim control over the strategic Strait of Hormuz, a point of contention that has seen Iran reorganize its military for a more assertive international posture amid stalled peace talks. Tehran insists the waterway will only reopen if sanctions are lifted and its frozen assets are released.
US Defence Secretary Pete Hegseth, during a trip to Panama, indicated that the military could enforce the blockade indefinitely through ship rotations. A tentative June deal to end the conflict has collapsed, leading Iran to leverage control over the strait, including reported attacks on vessels attempting transit.