US threatens to collapse Iran with “toughest sanctions in history”

The United States will impose what Treasury Secretary Scott
Bessent described as the “toughest sanctions in history” on Iran,
as Washington seeks to intensify economic pressure on Tehran amid
the escalating crisis surrounding the Strait of Hormuz.

“It is a one-two punch. We have the blockade, and we are going
to have the toughest sanctions in history,” Bessent told CNBC on
Thursday.

“It is going to work in Iran, and we are going to collapse this
regime,” he added, saying the details of the new sanctions would be
announced on Monday.

Bessent’s comments came a day after US President Donald Trump
said he was launching an “economic D-Day” against Iran.

“ANY country that allows its financial institutions, businesses,
airports, or government entities to provide any type of lifeline to
Iran will itself face TREMENDOUS Economic Consequences,” Trump
warned.

The administration’s threats come as Washington continues to
face difficulties asserting control over the Strait of Hormuz,
while the ceasefire between the United States and Iran has
effectively broken down.

The confrontation is also increasingly affecting global energy
markets. Brent crude, the international benchmark, rose around 2%
on Thursday to $93.41 per barrel, adding to pressure on the US
administration as it attempts to contain borrowing costs and
inflationary pressures.

The disruption has extended beyond energy markets to global
shipping. The cost of chartering oil tankers has surged as the
conflict has disrupted traffic through key maritime routes. BWET,
an exchange-traded fund tracking shipping rates, has risen 98% over
the past month.

Asked about the increase in oil prices, Bessent said: “We have
asymmetric information, and I'm not sure why oil has popped up on
this.”

Iran has continued attacks against vessels in the Strait of
Hormuz, while the Houthis, Tehran’s ally in Yemen, have imposed a
maritime blockade against Saudi Arabia in the Red Sea.

The disruption has placed additional pressure on Saudi Arabia,
which relies heavily on maritime routes through the region for its
oil exports. The kingdom has reportedly been forced to redirect
some crude through pipelines toward the Mediterranean via
Egypt.

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