US to roll out ‘economic isolation’ plan for Iran next week

THE US will soon announce what it bills as unprecedented economic measures against Iran, Treasury Secretary Scott Bessent said, intensifying the Trump administration’s effort to force Teheran’s capitulation through financial pressure.

“Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation on a country,” Bessent said on Thursday (Aug 13) in an interview with Newsmax. 

Bessent said the move will be part of a “one-two punch” that includes the continued blockade of Iran’s ports. 

Iran’s economy has already taken a significant hit from the war, with much of its industrial capacity destroyed and crude exports severely curtailed by the US blockade.

But the country has weathered waves of sanctions, which have failed to force Teheran to bend on its nuclear programme or relinquish control over the Strait of Hormuz.

US President Donald Trump in recent days has renewed his administration’s push for economic pressure on Iran as the US faces a shortfall of necessary munitions and appears wary of expanding its military campaign.

Trump told Axios over the weekend that he is “low-keying it” with Iran. “We are just watching Iran with its huge inflation and the fact they have no money,” he said.

Iran, for its part, has reorganised its military to be more aggressive abroad as talks on ending the war with the US remain in stalemate, a sign that Teheran is preparing for a protracted era of regional conflict.

There is little sign of a breakthrough between Iran and the US over the Strait of Hormuz.

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Both sides claim control of the waterway, through which one-fifth of the world’s oil and gas is shipped, and are demanding concessions that are unlikely to be met.

Oil held losses, with Brent trading near US$87 a barrel after falling 2.2 per cent in the previous session. 

Over the weekend, Iranian Foreign Minister Abbas Araghchi said a pact with Oman to establish a shipping route through the strait was “very close”, without providing details. 

The two sides have not yet announced an agreement.

Mohsen Rezaee, the newly-appointed secretary of Iran’s Supreme National Security Council, said any agreement with Oman would remain separate from a full reopening. BLOOMBERG