Reuters: US Treasury's Scott Bessent to Announce Additional Sanctions on Iran

US Treasury Secretary Scott Bessent said in an interview with CNBC on August 20 that he plans to hold a press conference on August 24 to unveil details of the "harshest sanctions in history" against Iran. The move marks a significant escalation of pressure on Iran's economy by the Trump administration following months of military conflict.

**"Combined Punch" Strategy: Blockade and Sanctions in Tandem**

Bessent described the current strategy as a "two-pronged combination punch," pairing a naval blockade with economic sanctions. He asserted, "Once we impose the blockade... it will work in Iran as well—we will completely cripple this regime." Bessent also called on US allies to join in what he termed "the largest coordinated economic isolation in world history," warning that any entity or country continuing commercial ties with Iran would face the Treasury's "full-force and coercive action."

**Urging China to Comply, Beijing Firmly Opposes**

Given that China is a major buyer of Iranian oil, Bessent specifically urged Beijing to cooperate with the sanctions. According to data from analytics firm Kpler for 2025, China purchased over 80% of Iran's seaborne crude. In response, a spokesperson for the Chinese Embassy in the US stated that sanctions and pressure do not help resolve the issue and called on all parties to settle disputes through political and diplomatic channels. Bessent himself said that many discussions are best held privately and did not directly respond to whether action would be taken against China.

**Market Impact and Reactions**

Bessent argued that the oil market has "misread the implications of this economic pressure," adding that applying maximum economic pressure makes a large-scale military restart unlikely. However, Iranian Foreign Minister Abbas Araghchi accused Trump of trying to divert attention from US domestic debt issues. This week's shipping data shows that the Strait of Hormuz remains effectively closed, and the prospect of supply disruptions has driven oil prices sharply higher.