Iran faces 'economic D-Day', US treasury secretary warns

ByMitchell Labiak Business reporter.

Key points

• Nevertheless, Trump pulled out of that agreement in 2018, calling it defective at its core, and reimposed all US sanctions on Iran.
• Bessent's threat to the Iranian regime follows a number of U-turns and extended deadlines from US President Donald Trump's administration on previous threats.
• The Iranian regime has additionally issued a new warning to shipping not to pass through the Strait of Hormuz without its permission, the agency noted.
• During Joe Biden's term as US president, he created some attempts to reinstate the Obama-era agreement, but this did not happen.
• 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".

In practice, 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 remarked the US would sever all economic ties with the country in "an economic D-Day" and that any nation partnering with Iran financially would additionally be isolated.

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

Meanwhile, the Iranian regime has additionally issued a new warning to shipping not to pass through the Strait of Hormuz without its permission, the agency noted.

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 by the country since the conflict began at the end of February.

Bessent created 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 projected to do so in a press conference in the US at 13: 00 local time (18: 00 BST) on Monday.

"The world should understand that our objective is to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone, " he wrote in the piece.

Notably, the US has created a number of threats to Iran over the course of its war with the country, including Trump saying in April that "a whole civilisation will die tonight" unless Iran agreed a accord to end the war and unblock the Strait of Hormuz.

Notably, the US eventually climbed down from that position after mediator Pakistan intervened and pressed more diplomacy. The Iranian regime already faces tough economic sanctions from the US.

Former US president Barrack Obama and a number of US allies had agreed a agreement with the country in 2015 which lifted plenty of sanctions in return for Iran agreeing to limit its nuclear programme.

In April this year, the Trump administration introduced 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 now, iran faces ' economic D-Day' , US treasury secretary warns remains the part of the story worth watching, and further updates are likely as more details are confirmed.