‘Like never been seen…’: US plans to roll out ‘economic isolation’ for Iran next week

US-Iran war: The US plans to impose unprecedented ‘economic isolation’ on Iran, according to Treasury Secretary Scott Bessent. He said Washington will soon announce new economic measures against Tehran, combined with a continued blockade of the Strait of Hormuz. This move comes as the Trump administration increases financial pressure while ceasefire talks remain stalled.

On Thursday, the US also stated it could maintain a naval blockade of Iran indefinitely, despite falling global oil supply and rising regional tensions. The Strait of Hormuz, a key route for about one-fifth of the world’s oil and gas shipments, showed no signs of a breakthrough.

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In an interview with Newsmax, Bessent said, "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 in a country." He described the strategy as a combination of economic isolation and a continued blockade to prevent any movement in or out of Iranian ports.

Iran’s economy has suffered greatly from the war, with much of its industrial capacity destroyed and crude exports limited by the US blockade. Despite previous sanctions failing to change Tehran’s nuclear programme or control over the Strait of Hormuz, the country has faced severe economic challenges.

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Trump has recently renewed efforts to increase economic pressure on Iran amid concerns over munitions shortages and reluctance to expand the military campaign. Trump told Axios that he was "low-keying it" with Iran, noting the country’s high inflation and lack of money.

Trump is also under domestic pressure to end the unpopular war, with high fuel prices affecting his approval ratings ahead of the midterm elections in November. He has claimed the US has "total control" over the strait, a statement denied by Iran.

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Meanwhile, Iran has reorganised its military for a more aggressive stance abroad as peace talks remain deadlocked. Tehran insists the waterway will not reopen until sanctions are lifted and frozen Iranian assets released. Both sides claim control of the strategic strait and seek concessions unlikely to be met.

US Defence Secretary Pete Hegseth said the military could enforce the blockade indefinitely by rotating ships. He made the remarks during a trip to Panama. With a tentative June deal to end the war now collapsed, Iran has sought leverage by controlling the strait and has attacked vessels attempting to transit it.