US Prepares Largest Economic Isolation in History to Topple Iranian Regime
US Treasury Secretary Scott Bessent has urged Washington’s allies to support efforts to ‘crack’ Iran’s economy. The move is part of a large-scale economic pressure campaign to topple the regime in Tehran.
‘We will bring down this regime. It is time for our allies and the entire world to make a decision,’ Bessent stressed in an interview with CNBC.
Bessent offered a stark choice to America’s international partner countries. ‘You are with us, or against us,’ he said.
Bessent’s tough statement followed an assertion by US President Donald Trump that any country providing a ‘lifeline in any form’ to the Islamic Republic of Iran regime would face ‘enormous economic consequences.’
Although he has not yet detailed the specific steps President Trump’s team will take, Bessent said the details of the plan would be announced at a press conference on 24 August. He added that the economic pressure campaign is designed to minimise the need for ‘reigniting large-scale military conflict.’
The US and Israel began strikes on Iran in February on the grounds of preventing Tehran from developing nuclear weapons, an accusation Iran has consistently denied. In retaliation, Iran attacked Israel, US bases in the Middle East, and targeted Arab countries in the Gulf region that are US allies. Iran also closed most of the Strait of Hormuz, a vital route for 20 per cent of the world’s oil and liquefied natural gas, triggering fluctuations in global energy prices.
Although ceasefire agreements were reached in April and June to facilitate negotiations, they were frequently violated and the talks reached a deadlock. Now, Washington is preparing to launch what it describes as the most devastating economic operation. Bessent confirmed that the new sanctions would be part of ‘the largest coordinated economic isolation in world history.’
‘If you insist on doing business with them, whether sending money or buying their oil… then the Treasury Department and the US government will deploy their full force against you,’ Bessent said, directing a warning at international trading partners.
Iran’s economy has long been crippled under the burden of decades of international sanctions. Earlier this year, a surge in the cost of living triggered a wave of public protests. Official data shows the price of basic necessities rose by an average of 60 per cent in the 12 months to February 2026, while food prices doubled.
However, a number of local residents doubt the effectiveness of the new sanctions on the regime’s survival.
A resident in Khuzestan Province voiced optimism that the country is capable of enduring. ‘There may be an impact at the start of implementation, but that does not mean Iran will be unable to overcome this crisis,’ he told the BBC.
Another resident also assessed that Washington’s bluster would not immediately bring down the government. ‘Not everything changes just because of a statement made by President Trump,’ he told Middle East Lifeline. ‘Iran has lived under sanctions for years, and the people are used to this situation. I am confident Iran will find other ways to keep trading.’