Treasury Secretary Bessent says US will 'squash' Iranian economy, collapse 'murderous regime'

US Treasury Secretary Scott Bessent told CNBC the US will collapse the Iranian regime by squashing its economy, using a blockade and the toughest sanctions in history. He warned allies against doing business with Iran, threatening enforcement. Bessent echoed President Trump's 'Economic D-Day' warning and claimed US control of the Strait of Hormuz. Iran's foreign minister dismissed the threats as a distraction from domestic US problems.

US Treasury Secretary Scott Bessent told CNBC in an interview on Thursday that the United States will collapse the Iranian regime by squashing its economy. Bessent said the US will use a combination of a blockade and the toughest sanctions in history, describing it as a 'one-two punch.' He warned that any American ally continuing to do business with Iran—whether transferring money or buying oil—will face the full might of the US Treasury and government enforcement. Bessent echoed President Donald Trump's Truth Social post from Wednesday night, in which Trump warned of an 'Economic D-Day' for Iran and threatened 'Tremendous Economic Consequences' for any country providing a lifeline to Iran. Bessent also claimed the US, not Iran, controls the Strait of Hormuz and said oil markets are misinterpreting what the economic pressure means. Iran's Foreign Minister Abbas Araghchi dismissed Trump's comments as an attempt to divert American public opinion away from domestic financial problems, including record debt and rising interest rates. Trump did not specify what steps the US would take against countries that continue dealing with Iran. Bessent said he will hold a press conference on Monday to discuss the details of the economic pressure.