Kathmandu— United States Treasury Secretary Scott Bessent stated that a new series of economic measures will “collapse” the Iranian government, urging international cooperation in the effort. Speaking on CNBC Thursday, Bessent outlined plans for what he described as the “toughest sanctions in history” against Iran, a country engaged in a nearly six-month conflict with the US and its allies. He warned that countries continuing to trade with Iran could also face economic penalties from the US government, framing the strategy as an attempt at unprecedented global economic isolation.

Escalating Economic Pressure

Bessent described a two-pronged approach involving a blockade of Iran coupled with the implementation of severe sanctions. “It is going to work in Iran, and we are going to collapse this regime,” he said. The US strategy aims to cut off Iran’s access to financial resources and trade, effectively isolating it from the global economy.

Warning to International Partners

The Treasury Secretary issued a stark warning to countries considering continued economic engagement with Iran. “We’re going to them and saying: You’re either with us or against us,” Bessent stated, adding that any nation transferring money, purchasing oil, or providing shipping services to Iran would face repercussions from the US Treasury and government. He characterized this as “the greatest coordinated economic isolation in the history of the world”.

China's Role Remains Unclear

While Bessent emphasized the need for global participation, he remained evasive when questioned about whether China – a major trading partner with Iran – would be specifically targeted. He indicated that some discussions were best held privately but suggested all countries should recognize the economic benefits of reopening the Strait of Hormuz, a vital oil transit route currently restricted by Iranian forces. Bessent noted that China receives 50 percent of its energy from the Gulf region and therefore has a vested interest in resolving the conflict.

Long-Standing Policy of Isolation

The announcement builds on decades of US efforts to isolate and weaken Iran, even prior to the current war. On Thursday, the Trump administration expanded sanctions by designating ten individuals associated with Hezbollah, an Iranian-backed Lebanese group, including a Turkish businessman accused of facilitating financial support. Despite these long-term measures, critics remain skeptical about their effectiveness in achieving broader US objectives in Iran.

The implementation of these new economic measures is expected to further escalate tensions between the US and Iran, with potential ramifications for global oil markets and international trade.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.