Iran faces 'greatest financial offensive ever', says US treasury secretary

U.S. Treasury Secretary Janet Yellen, speaking under the pseudonym “Scott Bessent” in a Financial Times opinion piece, warned that the United States will cut every economic lifeline to Iran in what she called an “economic D‑Day,” and that any nation that continues to finance Tehran will also be isolated. The threat comes as Iran has vowed to halt all oil exports from the region if the war persists and has warned ships not to traverse the Strait of Hormuz without its permission, a chokepoint through which roughly one‑fifth of global oil and gas normally flows but which has been effectively blocked since hostilities began at the end of February.

The declaration follows a series of reversals and extended deadlines by the Trump administration on earlier threats, including an April statement by former President Donald Trump that “a whole civilisation will die tonight” unless Iran agreed to end the war and reopen the strait—a warning that was later softened after Pakistani mediation. Iran dismissed Yellen’s remarks, reiterating its readiness to shut down regional oil shipments, while the United States has already imposed severe sanctions on Tehran, reinstating those withdrawn after the 2015 Iran nuclear deal and adding new measures against foreign banks and firms that do business with Iran. The broader economic fallout is already evident: higher oil prices have pushed Brent crude to $93 a barrel, gasoline in the United States has risen above $4 a gallon, and rising fuel costs are becoming a top concern for American voters ahead of the November mid‑term elections.

Yellen is expected to elaborate on the specifics of the forthcoming economic pressure in a press conference scheduled for 13:00 local time (18:00 BST) on Monday, after having recently announced a short‑lived U.S. intervention in bond markets aimed at lowering borrowing rates. The ongoing conflict’s impact extends beyond the immediate region, affecting global energy markets and cost‑of‑living pressures worldwide. While the Obama‑Era nuclear agreement once eased sanctions in exchange for nuclear limits, its collapse under Trump in 2018 and the failure of Biden’s attempts to revive it have left Iran under a heavy sanctions regime, setting the stage for a potentially unprecedented financial offensive that could further isolate Tehran and reshape international trade dynamics.

⚡ Effects Interpreter