US Treasury Secretary Announces Plans for Severe Sanctions on Iran, Urges Beijing's Cooperation

NEW DELHI: U.S. Treasury Secretary Scott Bessent announced on Thursday that Washington plans to impose what he described as "the toughest sanctions in history" on Iran. The announcement follows a nearly six-month-long conflict involving the U.S. and Israel against Iran.

Speaking to CNBC, Bessent outlined the administration's dual strategy, describing it as a "one-two punch" consisting of a blockade on Iran paired with severe economic penalties. Bessent stated that further details regarding the measures would be discussed during a press conference on Monday. President Donald Trump had earlier warned of economic consequences for any country providing a lifeline to Iran.

The announcement has drawn a response from Beijing. A spokesperson for the Chinese embassy in Washington stated that sanctions and pressure do not help resolve the problem, calling on relevant parties to pursue political and diplomatic solutions. According to 2025 data from analytics firm Kpler, China purchases more than 80 percent of Iran's shipped oil.

When asked about the possibility of targeting China for conducting business with Iran, Bessent declined to comment publicly, noting that such conversations are best held privately. He added that China receives 50 percent of its energy from inside the Gulf and urged Beijing to cooperate with U.S. efforts to reopen the Strait of Hormuz and lower energy prices.

Iran has faced economic sanctions for nearly 50 years following the 1979 Islamic Revolution. Iranian Foreign Minister Abbas Araqchi dismissed the U.S. statements as an attempt to divert American public opinion from domestic financial challenges, including rising interest rates and record debt.

Meanwhile, oil prices climbed to more than three-week highs on Thursday following the announcements. Addressing the market reaction, Bessent expressed the view that oil markets are misinterpreting the implications of the economic pressure, suggesting that maximum economic pressure makes a large-scale kinetic restart less likely.

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