US Sanctions Could Collapse Iran's Economy Within Weeks or Months: Bessent

Treasury Secretary Scott Bessent warned that Iran's economy could collapse 'within weeks or months' due to US sanctions, which are backed by the European Union. The latest measures are part of what the Trump administration has called an 'economic D-Day.'

Bessent noted that the US will sanction another Iranian bank as part of this pressure campaign, called Operation Economic Outcast. He also warned that 'all options are on the table' to sanction China for continuing to purchase Iranian oil.

The Trump administration has been trying to isolate Iran economically, and Bessent said they have received 'fulsome support' from the EU in their efforts. However, the president's decision to deploy a US naval blockade outside Iranian ports in the Strait of Hormuz has led to soaring gas prices, with the national average reaching $4.10 per gallon on Tuesday.

The US has released oil from the Strategic Petroleum Reserve (SPR) to combat these high costs, but the SPR is now at its lowest level since 1983. Bessent said that following an oil deal reached with the Venezuelan government, the US will be able to 'fill up' the SPR.