Treasury Secretary Scott Bessent explained how the Trump administration is using economic pressure to force Iran’s government to negotiate a peace settlement that would prevent it from acquiring nuclear weapons.
He discussed the strategy during an interview on CNBC.
“If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart,” Bessent explained. “But I would emphasize that is for now. And we do have control of the Strait. You would have seen media reports that large amounts of energy are getting out.”
The Iranian regime has maintained a blockade in the Strait of Hormuz since shortly after the war began in late February. As it stands today, the waterway is open, but severely restricted. Commercial traffic has been at a small fraction of normal levels before the war.
Bessent stated he believes oil markets “are misinterpreting what this economic pressure means” and that “we are going to all of our allies and this is going to be the greatest coordinated economic isolation in the history of the world.”
And we are going to them and saying, you are either with us or against us. You want this murderous regime to end. And if you insist on doing business with them, either transferring money, buying their oil, they are doing seaborne ship transfers, then the US Treasury and the US government, they will put its full might and force toward enforcing against you.
President Trump announced what he called “Economic D-Day” against Iran, warning that countries providing Tehran with financial support could face serious consequences.
— Breaking911 (@Breaking911) August 20, 2026
Trump said the Strait of Hormuz remains open to significant vessel traffic and called the U.S. naval blockade… pic.twitter.com/SqBrAJaBGw
“So it is time for our allies and the rest of the world to make a decision,” the Treasury Secretary continued. “And we are going to squash the economy of this murderous regime, which will curtail their ability to project power through their proxies. It will mean that they cannot pay the military. And we have substantial inflation, both food inflation and ordinary inflation in Iran.”
Bessent pointed out that this strategy worked in Venezuela and that it is also working with Cuba. “We are going to collapse this regime,” he said.
🚨 BREAKING: Treasury Sec. Scott Bessent just DROPPED this chilling line on Iran
— Eric Daugherty (@EricLDaugh) August 20, 2026
"WE ARE GOING TO COLLAPSE THIS REGIME." 🔥
"This is going to be the greatest coordinated economic isolation in the HISTORY OF THE WORLD."
"You are with us or against us. You want this m*rderous… pic.twitter.com/Q0Tmvq67mG
Bessent said last week that the United States would apply an economic offensive against the regime that has “never been seen.”
The United States placed a retaliatory blockade on the Strait targeting vessels traveling to and from Iran. It is estimated that the blockade has cost the regime almost $5 billion in oil revenue by early May.
Iranian Foreign Minister Abbas Araghchi responded to the offensive, saying it “will only bring further defeat.”
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