What Bessent’s economic isolation of Iran could look like

Treasury Secretary Scott Bessent says the US is getting ready to squeeze Iran with unprecedented economic pressure, a claim critics greeted with skepticism given the country is already subject to a naval blockade and thousands of sanctions.

While the Trump administration hasn’t said what it’s planning to do, there are still pressure points that Bessent’s Treasury Department could hit.

The main challenge is that targeting the remaining options risk blowback on the US economy.

“Unless the president decides to prioritize addressing the Iran threat over all other issues, and namely China, it’s unlikely any action they take is going to materially change Iran’s calculus,” Bloomberg Economics analyst Chris Kennedy said.

Below is a look at a few options.

They’re far from exhaustive and it remains unclear which, if any, the administration will pursue.

Officials could combine several of these measures or opt for a different approach altogether.

China Ties China buys more than 90% of Iran’s oil exports.

Penalties on entities that facilitate these purchases would directly reduce Tehran’s oil revenues.

Washington has already sanctioned some Chinese teapot refineries and firms since the US started the war against Iran in late February.

But so far, the US has stopped short of targeting the major Chinese banks that finance the trade.

GLOBAL REACT: Bessent’s Iran Threats Face China Constraint The risk is that hitting Chinese companies or financial institutions risks worsening tensions with Beijing ahead of a planned meeting between President Donald Trump and Chinese leader Xi Jinping.

There’s also an economic tradeoff, since curtailing Iranian barrels would remove discounted crude from the global market and could lift already elevated oil prices.

In May, China ordered domestic companies not to comply with US sanctions on five refiners, while its biggest banks were caught between Beijing’s directive and the risk of losing access to the US financial system.