The US Treasury Secretary Scott Bessent has threatened Iran with sweeping economic sanctions, vowing to sever all financial ties with the country and isolate any nation supporting it economically. Iran has responded by threatening to halt regional oil exports if military conflict continues.

US Treasury Secretary Scott Bessent has issued a stark warning to Iran, describing an impending "economic D-Day" that would represent the "single greatest financial offensive ever" against the country. Speaking through an opinion piece in the Financial Times, Bessent stated that the objective would be to eliminate every economic lifeline sustaining what he termed the "tyrannical regime" until Iran becomes internationally isolated. He did not elaborate on specific measures but indicated that details would be provided during a press conference scheduled for Monday.

Iran has dismissed the threat and countered with its own warning. According to Reuters, Iranian officials stated they would shut down all oil exports from the region if military hostilities continue. Additionally, Iran has issued new restrictions on shipping through the Strait of Hormuz, requiring vessels to obtain permission before passage. The strategic waterway, through which approximately one-fifth of global oil and gas typically flows, has been effectively blocked by Iran since conflict began in late February.

The latest escalation follows a pattern of US threats and subsequent reversals. In April, President Trump stated that "a whole civilisation will die tonight" unless Iran agreed to end the conflict and reopen the Strait of Hormuz, though this position was later abandoned following diplomatic intervention from Pakistan. Iran already operates under substantial US economic sanctions dating back to Trump's 2018 withdrawal from the 2015 nuclear agreement negotiated under the Obama administration. Attempts by the Biden administration to restore that agreement ultimately proved unsuccessful.