US Threatens Severe Sanctions Against Iran, Warns Allies and China

On Thursday (20/08), the United States issued a warning to its allied nations and China to join a new economic pressure campaign against Iran. Washington stated that parties choosing not to support the policy would face consequences.

US Treasury Secretary Scott Bessent said his administration was preparing what he called the largest coordinated economic isolation ever undertaken.

“This will be the largest coordinated economic isolation in the history of the world. And we will go to them and say: you have to choose, with us or against us,” Bessent told CNBC television.

When asked about possible pressure on China, Bessent did not explain in detail the steps Washington would take. He said some discussions were better held privately, but still urged Beijing to participate in the policy.

“A lot of conversations are best held privately,” he said, while calling on Beijing “to join this programme.”

Bessent also urged other countries to support the measures taken by the United States. According to him, countries that do not join should be prepared to face the consequences of that decision.

“So, this is the time for our allies and the whole world to make a decision, and we will destroy the economy of this murderous regime, which will ultimately limit their ability to project power through their proxies,” he said.

Since US President Donald Trump began his confrontation with Tehran in late February, Washington has announced a series of new economic sanctions against Iran. Nevertheless, the Iranian government has so far managed to withstand the pressure.

Bessent expressed confidence that the next round of sanctions would have a greater impact.

“We will destroy this regime,” he said.

According to Bessent, the implementation of greater economic pressure is also linked to the possibility of US military action against Iran in the near future.

“If we apply maximum economic pressure, that means there will most likely be no resumption of large-scale military action, but I want to emphasise that that is only for now,” he said.

He said he would hold a press conference on Monday (24/08) to outline the details of the new economic pressure campaign being prepared by the US government.

In the same interview with CNBC, Bessent reiterated that the plan to tighten sanctions against Iran could reduce Washington’s need to resume large-scale military operations.

China reacted sharply?

Responding to Bessent’s statement, a spokesperson for the Chinese Embassy in Washington said pressure and sanctions were not the solution to the Iran issue.

“On the Iran issue, sanctions and pressure do not help resolve the problem. China calls on the relevant parties to take responsible action and resolve the issue through political and diplomatic means,” the spokesperson said, according to a Reuters report.

According to data from analytics firm Kpler in 2025, China buys more than 80% of Iran’s oil exports. That trade relationship is a concern for Washington amid plans to increase economic pressure on Tehran.

Iran has faced economic sanctions for nearly five decades since the 1979 Islamic Revolution. Iranian Foreign Minister Abbas Araqchi called Trump’s statements an attempt to divert US public attention from domestic economic problems, including high debt and rising interest rates.

Bessent also highlighted the market reaction to the new economic pressure plan.

“I think the oil market is misinterpreting the meaning of this economic pressure,” Bessent said.

Meanwhile, oil prices on Thursday (20/08) rose to their highest level in more than three weeks.

“We have asymmetric information, and I am not sure why oil prices spiked because of this. If we apply maximum economic pressure, that means there will most likely be no resumption of large-scale military action,” he said.

When asked whether the US could target China for continuing to do business with Iran, Bessent did not answer directly.

“We believe that all parties want the (Hormuz) Strait reopened, and for energy prices to come back down,” he said. “It is worth remembering that China gets 50% of its energy from the Gulf region. So, it would be very beneficial for them to join this programme.”

More than 750 US soldiers wounded since war against Iran

More than 750 US military personnel have been wounded during operations against Iran, according to Pentagon data. Since the war began in late February, 757 military members have been recorded as injured, with more than 580 of them from the US Army.

The data also includes 86 Navy personnel, 64 Air Force personnel, and 19 members of the Marine Corps.

The Pentagon and US Central Command have so far provided little information about the causes of injuries suffered by personnel or the extent of damage at US military bases during the conflict. Several officials said most of the casualties suffered traumatic brain injuries.

Most of the casualties were recorded under the category “Operation Epic Fury”, the official name of the military operation. However, in late July, the Pentagon added a new category in the Defence Casualty Analysis System, namely “Foreign Operations”, to record personnel wounded in the latest attacks.

The Pentagon said the change was made after Operation Epic Fury ended and the military decided to group casualties related to subsequent operations into the new category.

Amid the ongoing conflict, United States debt on Wednesday (19/08) surpassed a record US$40 trillion. The increase came five months after the federal government debt reached US$39 trillion.