US calls on allies and China to back 'greatest economic isolation' against Iran
Washington, August 20: The United States on Thursday called on allies and China to join a new economic pressure campaign against Iran, with Treasury Secretary Scott Bessent vowing that Washington will "collapse this regime" in Tehran.
Speaking to CNBC, Bessent described the initiative as "the greatest coordinated economic isolation in the history of the world" and said the US expects every nation to take a side. "You are either with us or against us," he said, addressing allies. He did not specify which actions the US would take, but said he would provide more details during a press conference on Monday.
The plan was first hinted at by President Donald Trump on Wednesday, when he promised the "most crushing" economic operation ever deployed against Iran. The announcement came as the war between the US and Iran approaches its sixth month. The conflict has put pressure on Trump at home, with midterm elections looming. By shifting to economic measures, the administration may be seeking a way to show progress without expanding military operations.
Bessent suggested that with maximum economic pressure, a large-scale military operation might not be necessary "for now." However, he did not rule out future action. His comments also mark a notable return by a senior US official to talk of regime change. Earlier in the conflict, Trump had insisted that the goal was to prevent Iran from acquiring a nuclear weapon, not to overthrow its government.
The Treasury Secretary was less specific on the question of China, which has been the largest buyer of Iranian oil despite existing sanctions. When asked whether Washington would pressure Beijing, he said "many conversations are best to have in private." He did, however, publicly call on China to "get with the program." The remarks come just weeks before Chinese President Xi Jinping is scheduled to visit the White House on September 24, which may provide an opportunity for direct discussion.
Iran has dismissed the US plan. Foreign Minister Abbas Araghchi wrote on X that the so-called "Economic D-Day" is a diversion from America's own crisis, citing "unprecedented debt & surging interest costs." The Iranian Foreign Ministry went further, issuing a statement that called US sanctions "economic terrorism" and "crimes against humanity." The statement, carried by state media, said the sanctions violate the fundamental human rights of every Iranian citizen.
Iran has been under severe sanctions for years. Despite this, it has continued to export oil by using a "shadow fleet" of tankers that are also under international sanctions. China has been the main buyer of this crude. The continued trade illustrates the difficulties of isolating a country that has developed methods to circumvent restrictions.
The United States has not yet outlined what new measures it intends to impose. Existing sanctions already cover much of Iran's economy, including banks, shipping, and oil. Bessent's description of a "coordinated economic isolation" suggests that Washington expects other nations to enforce these restrictions more strictly, but it is unclear whether they will agree to do so.
It also remains to be seen how Washington's traditional allies and rivals will respond to the "with us or against us" framing. Some European allies have previously disagreed with the US approach to Iran and may be reluctant to adopt harder measures. China, for its part, has its own energy needs and has maintained economic ties with Tehran.
As the six-month mark of the conflict approaches, the effectiveness of the new economic campaign will depend on international cooperation. The press conference on Monday may provide answers, but so far, the full scope of the operation remains undefined.
