US Treasury Secretary Threatens 'Economic D-Day' Against Iran

The move comes amid ongoing tensions between the US and Iran and follows several U-turns on previous threats.

The threat

Key Analysis and Detailed Timeline

In April this year, the Trump administration launched a wave of sanctions on foreign banks and firms doing business with Tehran after it became clear its military operations had not caused Iran's regime to surrender. For related coverage, explore our detailed analysis on Technology and Digital Systems.

Bessent's threat is expected to have significant implications for the global economy and could potentially disrupt oil supplies through the Strait of Hormuz, a key waterway that handles much of the world's oil and gas.

The Iranian regime has already issued a new warning to shipping not to pass through the strait without its permission, which could lead to further tensions between the two countries.

Broader Impact and Sector Outlook

The threat

Analysts warn that a severing of economic ties with Iran could lead to a sharp increase in oil prices, which could have far-reaching consequences for the global economy.

The threat

However, others argue that the US has a right to take tough action against countries that do not comply with international law.

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How much could Trump's 'economic D-Day' hurt Iran?

The US treasury secretary has threated Iran with "the single greatest financial offensive ever", claiming the US-Israel war with Iran was "entering its endgame".

Scott Bessent stated the US would sever all economic ties with the country in "an economic D-Day" and that any nation partnering with Iran financially would also be isolated.

Bessent's threat to the Iranian regime follows several U-turns and extended deadlines from US President Donald Trump's administration on previous threats.

Iran dismissed Bessent's comments and stated it would shut down all oil exports from the region "if the war continues", according to news agency Reuters.

The Iranian regime has also delivered a new warning to shipping not to pass through the Strait of Hormuz without its permission, the agency reported.

One fifth of the world's oil and gas usually passes through strait, a waterway south of Iran, but the flow has been effectively blocked Bessent made the comments in an opinion piece for the Financial Times, external. He did not detail what the economic pressure on Iran would involve, but he is expected to do so in a press conference in the US at 13:00 local time (18:00 BST) on Monday.