The war between the United States, Israel and Iran is entering a new and potentially more consequential phase, with Washington threatening to unleash what it describes as an unprecedented financial assault on Tehran.
US Treasury Secretary Scott Bessent has warned that the Trump administration is preparing what he called the “single greatest financial offensive ever”, with the stated aim of cutting Iran off from the global economy and crippling the financial lifelines supporting its government.
In an opinion article published by the Financial Times, Bessent said the conflict was approaching its “endgame” and warned countries and financial institutions that continue doing business with Iran that they could face consequences from Washington.
“The world should understand that our objective is to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone,” Bessent wrote.
The Treasury secretary did not immediately provide details of what the new offensive would entail, but he was expected to outline the administration’s plans during a press conference in the US on Monday.
The threat comes as the economic consequences of the conflict continue to spread far beyond the battlefield.
Iran Threatens To Hit Oil Supplies
Tehran has rejected Washington’s latest threat, with Iranian officials warning that the country could take even more drastic measures if the war continues.
According to Reuters, Iran has threatened to shut down oil exports from the region, while its regime has also warned ships against passing through the Strait of Hormuz without permission.
The warning has raised fresh concerns about the global energy market.
The Strait of Hormuz is one of the world’s most important energy corridors, with roughly one-fifth of global oil and gas supplies normally passing through the waterway.
Since the conflict began at the end of February, however, traffic through the strategic passage has been severely disrupted.
Any prolonged closure or further restriction could therefore send another shock through global energy markets, pushing oil prices higher and adding pressure to households already struggling with elevated living costs.
On Monday, Brent crude, the global benchmark, was trading at about $93 per barrel.
Washington’s Economic Pressure Campaign
The latest threat is not the first time the Trump administration has warned Tehran of devastating consequences.
Washington has issued several ultimatums since the conflict began, with some of the deadlines later extended or positions softened as diplomatic efforts continued.
In April, Trump issued an especially stark warning, saying that “a whole civilisation will die tonight” unless Iran agreed to a deal to end the conflict and reopen the Strait of Hormuz.
The administration later stepped back from that position after Pakistan intervened and encouraged renewed diplomatic efforts.
Bessent’s latest comments suggest, however, that Washington may now be preparing to move beyond military pressure and intensify the economic battle.
The US already maintains extensive sanctions against Iran, restricting its access to international finance and targeting businesses and institutions involved in its economy.
Why Iran’s Economy Remains In Washington’s Sights
The confrontation over Iran’s economy has deep roots.
In 2015, the administration of former US President Barack Obama, alongside several international powers, reached a nuclear agreement with Tehran.
Under the agreement, Iran accepted restrictions on aspects of its nuclear programme in exchange for the lifting of many international sanctions.
That arrangement began to unravel in 2018 when Trump withdrew the US from the agreement, describing it as fundamentally flawed, and restored American sanctions against Iran.
The Biden administration later attempted to revive the agreement, but negotiations failed to produce a lasting restoration of the deal.
The pressure intensified again this year.
In April, the Trump administration imposed another wave of sanctions targeting foreign banks and companies accused of conducting business with Tehran, as Washington sought to increase pressure on the Iranian government.
The Economic Battlefield Is Already Global
While the political confrontation is centred on Washington and Tehran, its consequences are being felt by consumers and businesses thousands of miles away.
Higher oil prices have raised concerns about fuel costs, transportation and the broader cost of living.
In the United States, gasoline prices have risen above $4 per gallon, making energy affordability an increasingly important issue for voters ahead of November’s midterm elections.
The pressure also comes at a delicate moment for the US economy.
Last week, Bessent announced that the US government would intervene in bond markets and buy back more government debt in an attempt to increase demand for bonds and bring borrowing costs down.
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The effect was short-lived, however, with long-term borrowing costs rising again the following day.
That backdrop makes the confrontation with Iran particularly significant.
If Washington succeeds in cutting Tehran off from additional sources of revenue, the pressure on Iran could intensify dramatically. But if Iran responds by disrupting oil supplies or restricting the Strait of Hormuz, the consequences could be felt across the global economy.
A Dangerous Economic Gamble
The language coming from Washington is unmistakably severe: “economic D-Day,” “every economic lifeline” and the “single greatest financial offensive ever.”
But the bigger question is what happens after the threats are made.
For Iran, another round of sanctions could deepen an already difficult economic situation.
For the United States and its allies, however, aggressive economic warfare carries its own risks if Tehran retaliates by targeting one of the world’s most important oil routes.
And for ordinary people, the consequences may ultimately be measured not in diplomatic statements or military maps, but in the price of petrol, transportation, food and everyday necessities.
The battle between Washington and Tehran may be taking place thousands of kilometres away from many of the world’s major cities.
But if the Strait of Hormuz remains disrupted and oil prices continue climbing, the economic shockwaves will not respect borders.