Bessent urges US partners to back plans to 'squash' Iran economy

What the report says

US Treasury Secretary Scott Bessent is pressing Washington’s allies to support a tougher campaign against Iran, saying countries will soon have to decide whether they stand with the United States or against it. Speaking to CNBC, he said the aim is to “squash” the Iranian economy through what he described as a coordinated isolation effort, while offering few details on the specific measures under consideration.

The comments follow a warning from President Donald Trump on Truth Social that any country providing a “lifeline” to Iran’s government could face major economic consequences. BBC World News reported that Bessent said foreign governments and businesses dealing with Tehran — including those buying Iranian oil or moving money — could be targeted by the US Treasury and other agencies if they continue such ties.

The Treasury secretary argued that sustained economic pressure could reduce the need for further military escalation. He said more information on the plan would be set out at a press conference on 24 August.

The BBC report said the threat comes against a backdrop of long-running sanctions on Iran and a weakened economy already strained by inflation, shortages and previous rounds of pressure from the US and its partners. The article also noted that some Iranians and business figures believe the country can adapt, even if additional sanctions cause short-term damage.