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Akbar Novruz

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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.