WASHINGTON: US Treasury Secretary Scott Bessent said on Thursday that intensified economic pressure on Iran could reduce the chances of a renewed large-scale military campaign, as Washington moved to impose sweeping sanctions aimed at economically isolating Tehran.
US President Donald Trump warned on Wednesday of sweeping economic consequences for any country that provided what he called “any type of lifeline to Iran”, threatening economic warfare and isolation on an unprecedented scale.
In an interview with US broadcaster CNBC, Bessent said the United States was pursuing the “greatest coordinated economic isolation in the history of the world” and warned US allies that they were either “with us or against us” in the campaign.
BREAKING: Bessent says U.S. likely won’t restart large-scale Iran combat as it steps up economic pressure
— CNBC (@CNBC) August 20, 2026
He said maximum economic pressure would likely mean there would be no “large-scale kinetic restart” in Iran, while adding that he would hold a press conference on Monday to outline Washington’s next steps.
The US Treasury Secretary warned allies that they were either “with us or against us” on economically isolating Iran, after President Trump announced a new push on that front.
“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,” Bessent told US broadcaster CNBC of his message to allies.
“If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart,” Treasury Secretary Scott Bessent said in an exclusive interview on CNBC. https://t.co/thJLYzxCI5
— CNBC (@CNBC) August 20, 2026
On whether the United States would pressure China, he said “many conversations are best to have in private,” but called on Beijing “to get with the programme.”
Bessent said that a plan to sharply increase pain from economic sanctions on Iran aims to “collapse” the country’s government.
“It is going to work in Iran and we are going to collapse this regime,” he told CNBC. “This is going to be the greatest coordinated economic isolation in the history of the world.”
The US Treasury Secretary said that he will hold a press conference on Monday “to talk about exactly what we’re going to do” on Iran.
Iran condemns new US sanctions
Iranian foreign ministry condemned newly announced US economic and trade sanctions on Thursday, saying they targeted ordinary Iranians and amounted to “economic terrorism” and crimes against humanity.
The Iranian foreign ministry said that the measures will not weaken Tehran’s resolve to defend its independence, national sovereignty and interests.
بیانی درباره تحریمهای اقتصادی جدید آمریکا علیه ایران
تحریم و فشار اقتصادی روی دیگر سکه جنگ و تجاوز نظامی است..
اقدام آمریکا در اعلام پرطمطراق تحریمهای جدید، در عین اینکه اعتراف صریح به ارتکاب جنایت علیه بشریت تلقی میشود، تداوم سیاستی است که پیشاپیش آزموده و شکستخورده است.. pic.twitter.com/hDcsPMfQTx— وزارت امور خارجه (@IRIMFA) August 20, 2026
China says sanctions not the solution
China on Thursday urged the US and Iran to resolve their differences through political and diplomatic means, rejecting sanctions and pressure tactics.
Chinese Foreign Ministry spokesperson Lin Jian said all parties should act responsibly and remain committed to dialogue and diplomacy, stressing that sanctions and pressure were not the solution.
“Sanctions and pressure tactics are not the solution,” Lin Jian told reporters in Beijing. “China calls on parties to act responsibly and stick to the political and diplomatic approach,” the spokesperson said.
MFA Spokesperson’s response to President Trump’s planned “Economic D-Day” against Iran:
Sanctions and pressure tactics are not the solution. China calls on parties to act responsibly and stick to the political and diplomatic approach. pic.twitter.com/kzQQXxbixI
— CHINA MFA Spokesperson 中国外交部发言人 (@MFA_China) August 20, 2026
Trump’s ‘economic D-Day’ against Iran
Earlier, Trump announced what he called the “MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY”, warning Iran and countries that continue to provide economic support to Tehran of sweeping new measures.
In a post on Truth Social, Trump accused Iran of rejecting opportunities to reach a deal with his administration and said Washington would pursue “Economic Warfare and Isolation on an unprecedented scale”.
“No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it,” Trump said.
Also Read: Trump Announces Crushing Economic War on Iran
Trump claimed Iran’s navy had been destroyed, its air force was “destroyed”, its military factories reduced to rubble, and its currency rendered “worthless”.
The US president said the campaign was intended to cripple Iran’s ability to “project terror worldwide”, while reiterating Washington’s opposition to Tehran obtaining nuclear weapons. “IRAN WILL NEVER HAVE A NUCLEAR WEAPON,” Trump declared.
— Rapid Response 47 (@RapidResponse47) August 19, 2026
Iran warns of ‘further defeat’ to US
Responding to Trump’s threat, Iranian Foreign Minister Abbas Araghchi said that the US President’s ‘economic D-Day’ will bring ‘further defeat’ to US.
“The so-called “Economic D-Day” is a diversion from America’s own crisis: unprecedented debt & surging interest costs. Doubling down on failed policies will only bring further defeat—and enmity of Iranians,” Araghchi said.
The so-called “Economic D-Day” is a diversion from America's own crisis: unprecedented debt & surging interest costs.
Doubling down on failed policies will only bring further defeat—and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide pic.twitter.com/Qj5SzVBjvX
— Seyed Abbas Araghchi (@araghchi) August 20, 2026
Meanwhile, Iran’s Deputy Foreign Minister Gharibadabi said the US is heading towards a new failure, which they named “economic war”.
“They claim Iran is on the brink of collapse and hanging by a thread, yet they beg all their allies to help them! The problem is the wrong calculations that, each time to cover them up, they’re forced to create a bigger failure for themselves. The military war didn’t yield results, so now they’ve named the next failure ‘economic war”.
ادعا می کنند ایران در آستانه شکست است و به یک نخ بند است، اما به همه متحدانشان التماس می کنند که کمکشان کنند!
مشکل، محاسبات غلطی است که هر بار برای پوشاندنش، مجبور میشوند شکست بزرگتری برای خودشان بسازند.
جنگ نظامی نتیجه نداد، حالا اسم شکست بعدی را «جنگ اقتصادی» گذاشتهاند.— Gharibabadi (@Gharibabadi) August 20, 2026
Diplomatic efforts to end Middle East conflict
Egypt and Qatar on Thursday stressed the importance of maintaining close coordination to reach a “final, sustainable agreement” to end the Middle East war, while addressing the issues of Gulf states, according to a statement from the Qatari foreign ministry.
“Discussions also covered the latest regional developments, and the diplomatic efforts exerted to de-escalate tensions, contain conflicts, and enhance security and stability in the region,” it reads.
Both countries also emphasised the importance of reopening the Strait of Hormuz and ensuring the security, safety, and freedom of maritime navigation and the flow of international trade.
انعقاد أعمال الدورة السابعة للجنة العليا المشتركة القطرية المصرية في العلمين
العلمين | 20 أغسطس 2026
عُقدت اليوم في مدينة العلمين، أعمال الدورة السابعة للجنة العليا المشتركة بين دولة قطر وجمهورية مصر العربية الشقيقة.
ترأس الجانب القطري في أعمال الدورة، معالي الشيخ محمد بن… pic.twitter.com/IppnTXHaiM
— الخارجية القطرية (@MofaQatar_AR) August 20, 2026
Oil prices jump on US-Iran tensions
European stocks have fallen after oil prices rose further on a threat by Washington of “economic warfare” against Iran, outweighing the relief sparked by the US stepping in to push down high government bond yields that could threaten economic growth, AFP reported.
Oil prices jumped around 2.5 percent as peace talks between the US and Iran remained stalled, with Tehran keeping the key Strait of Hormuz shut and Washington persisting with a naval counter-blockade of Iran.
London, Paris and Frankfurt were all lower in midday trading today.
