U.S. Treasury Secretary Scott Bessent threatened on Thursday to impose an unprecedented campaign of economic isolation on Iran, warning that a sustained blockade of the Strait of Hormuz would prevent anything from entering or leaving Iranian ports. Bessent said the measures, combining financial pressure with a physical port blockade, would be detailed in further announcements next week.
The hardline stance marks a sharp reversal from August 4, when Bessent expressed optimism that a deal with Tehran to reopen the strait could be reached within days. Vice President JD Vance had earlier said Washington's top priority was lowering oil and gasoline prices for Americans.
Tensions have escalated since President Donald Trump announced on July 8 that a ceasefire with Iran was no longer in effect, prompting a series of U.S. strikes that U.S. Central Command said were in response to Iranian actions targeting commercial vessels. Trump later paused strikes in early August citing potential deal prospects, while Iran's foreign ministry said Tehran and Oman agreed on geographic details for shipping routes through the strait.