The United States urged its allies and China to join a far-reaching economic campaign against Iran if they wish to "see the Strait of Hormuz reopened and energy prices fall again", according to statements by US officials.
Treasury Secretary Scott Bessent warned via the X platform that "any country that maintains a link with Tehran will push its economy into the abyss, whether that link is voluntary or deliberately turning a blind eye". In an interview with CNBC, Bessent urged China to "engage" in the campaign, promising "the greatest coordinated economic isolation the world has ever seen" and insisting that "it will work on Iran, we will bring down this regime".
The statements followed President Donald Trump's announcement of a new sanctions campaign against Iran, described as "the most severe of its kind ever seen". Trump threatened on Wednesday with "exhaustive economic consequences" for any country that provided what he called "any kind of lifeline to Iran", particularly targeting China, which buys the majority of Iranian oil exports.
Iran rejected the threats, with the Foreign Ministry describing the new US economic and trade sanctions as "economic terrorism" and crimes against humanity. Iranian Foreign Minister Abbas Araghchi characterised Trump's announced "day of economic landing" as an attempt to divert attention from the United States' financial problems, citing growing US debt and interest costs.
The United States announced sanctions targeting 10 individuals accused of being part of a network responsible for transferring funds to Hezbollah, a close affiliate of the Iranian Revolutionary Guards. The US Treasury indicated that the network uses "couriers travelling on business trips between Lebanon, Turkey, the United Arab Emirates and Iran" to transfer hundreds of millions of dollars, enabling Hezbollah to "evade" existing sanctions. US Central Command reported that it rerouted 67 commercial vessels, disabled 3 vessels and inspected 2 others to ensure compliance with the US blockade against Iran through 20 August.
US Vice President J.D. Vance described the situation as "a new era" in which "the most effective tool we have is economic pressure", though he warned that "it will be a difficult dance" because Iran "will try to exert economic pressure on us". A State Department official said that the new classification of Hezbollah as an Iranian agent, rather than an independent entity, reflects that it operates "with little or no regard for Lebanese sovereignty, the Lebanese people and the Lebanese state".
The aircraft carrier USS George Washington began operations in the Middle East on Thursday, replacing the USS Abraham Lincoln after an extended deployment in the region. Its arrival coincides with the Trump administration's efforts to intensify economic pressure while maintaining a significant US military presence in the area.
