U.S. readies unprecedented ‘economic isolation’ plan for Iran

The U.S. will soon announce unprecedented economic measures against Iran, Treasury Secretary Scott Bessent said, intensifying the Trump administration’s effort to force Tehran’s capitulation after almost six months of war.

“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 on a country,” Bessent said in an interview with Newsmax on Thursday. The move will be part of a “one-two punch” that includes the continued blockade of Iran’s ports, he added.

Fighting erupted on Feb. 28 when the U.S. and Israel staged airstrikes on Iran, which responded with missile and drone attacks against American allies across the Middle East. Thousands of people were killed, mostly in Iran, before a truce was agreed in June.

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Talks aimed at bringing about a lasting peace have stalled and intermittent clashes have continued, disrupting the flow of oil and other key commodities from the region.

Iran’s economy has taken a major hit, with much of its industrial capacity damaged and crude exports severely curtailed by the U.S. blockade. But the Islamic Republic has weathered waves of sanctions that have failed to force it to bend on its nuclear program or relinquish control over the Strait of Hormuz.

U.S. President Donald Trump in recent days has renewed his administration’s push for economic pressure on Iran as the U.S. faces a shortfall of necessary munitions and appears wary of expanding a military campaign that’s faces mounting domestic opposition heading into midterm elections in November.

Trump told Axios over the weekend that he is “low-keying it” with Iran. “We are just watching Iran with its huge inflation and the fact they have no money,” he said.

Iran, for its part, has reorganized its military to be more aggressive abroad as talks on ending the war remain mired in stalemate, a sign that Tehran is preparing for the possibility of a protracted era of regional conflict.