US sanctions on Iran: ‘A double whammy’: US pledges toughest sanctions ever imposed on Iran, pressures China to help reopen Hormuz

The United States is preparing what Treasury Secretary Scott Bessent described as the “toughest sanctions in history” against Iran, as Washington seeks to intensify economic pressure on Tehran and force the country to reach a deal.Bessent said the measures would be part of a broader campaign of economic isolation and suggested they could help Washington avoid a new large-scale military operation. He also called on China, Iran’s largest oil customer, to cooperate with the United States in efforts to reopen the Strait of Hormuz.China, however, rejected the approach, saying sanctions and pressure would not help resolve the conflict and urging the parties to seek political and diplomatic solutions.

Bessent promises a “double blow” against Iran

Speaking to CNBC on Thursday, Bessent said Washington would combine its current blockade with sweeping new sanctions.“It’s a double blow. We have the blockade and we are going to have the toughest sanctions in history,” he said.Bessent added that the measures would be designed to put more pressure on Iran’s economy, saying: “It is going to work in Iran and we are going to collapse this regime.”He said he would hold a news conference on Monday to explain the measures in detail, adding that Washington was considering maximum economic pressure rather than a renewed large-scale military campaign.“Maximum economic pressure probably does not mean a kinetic reset,” Bessent said, suggesting that the United States does not currently expect to resume major military action against Iran.His comments came a day after President Donald Trump announced what he called the “MOST CRUSHING ECONOMIC OPERATION EVER CONDUCTED AGAINST ANY COUNTRY,” warning countries that provide financial, commercial or government support to Tehran of “tremendous economic consequences.”Trump said the campaign would target Iran’s economic lifelines, including oil smuggling networks, financial transfers, exchange houses, ship registries and front companies.

US pressures China over Iranian oil

Washington’s next challenge is China, which remains a major buyer of Iranian crude.China buys more than 80% of Iran’s maritime oil exports, according to 2025 data from analysis firm Kpler cited by Reuters. Therefore, any attempt by Washington to impose additional economic pressure on Chinese companies dealing with Iran could have significant consequences for the global oil trade.Bessent urged Beijing to support US efforts to reopen the Strait of Hormuz, a crucial energy transport route that has been at the center of the confrontation.“We are confident that everyone wants the Strait to reopen and for energy prices to go down again,” he said.And he added: “We must keep in mind that the Chinese obtain 50% (of their) energy from the interior of the Gulf. So it would do them a great favor to participate in the program.”Asked whether the United States might attack China for continuing to do business with Iran, Bessent said some discussions would be better done in private.China rejected the American approach. A spokesperson for the Chinese embassy in Washington said: “Sanctions and pressure do not help solve the problem. China calls on relevant parties to take responsible measures and resolve the issue through political and diplomatic means.”

Trump warns countries that help Tehran

Trump’s latest moves expand the economic pressure campaign beyond Iran itself by warning foreign governments, companies and financial institutions not to provide Tehran with what he calls a “lifeline.”In his announcement on Wednesday, Trump said: “Oil smuggling, trading lines, cash transfers, exchange houses, ship registries, front companies – it must all end NOW.”He also urged US allies to join Washington in isolating Tehran, calling the campaign an “ECONOMIC D-DAY.”Trump has repeatedly said that Iran should not be allowed to acquire a nuclear weapon. Meanwhile, Tehran has rejected Washington’s pressure campaign.Iranian Foreign Minister Abbas Araghchi accused Trump of using the economic campaign to divert attention from the United States’ domestic problems, including rising debt and interest costs.Araghchi called the so-called “economic D-Day” a distraction from the United States’ own economic problems and said that doubling down on sanctions would bring more “defeat” and “enmity from the Iranians.”

Hormuz remains key to the confrontation

The threat of sanctions comes as Washington and Tehran remain locked in a dispute over the Strait of Hormuz, through which a significant portion of the world’s oil supply normally passes.Trump has insisted the waterway remains open and has said the U.S. naval blockade has been effective. Iran, however, has linked reopening the strait to demands including lifting the blockade, releasing frozen Iranian assets and easing oil sanctions.The confrontation has also contributed to volatility in global oil markets. Oil prices rose to more than three-week highs on Thursday, although Bessent said he believed markets were misinterpreting the significance of the latest economic pressures.“I think the oil markets are misinterpreting what this economic pressure means,” he said.Bessent argued that maximum economic pressure could reduce the likelihood of a new military escalation, even as Washington prepares its most aggressive sanctions campaign yet.For China, the situation presents a difficult choice. Beijing has strong economic ties with Iran and relies heavily on Gulf energy supplies, while any escalation with Washington over Iranian oil could threaten the broader US-China economic relationship.