WASHINGTON, AUG 20: The United States will impose “the toughest sanctions in history” on Iran, US Treasury Secretary Scott Bessent said on Thursday as he urged Beijing to cooperate with Washington.

Bessent said he would hold a press conference on Monday to discuss details.

“It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history,” Bessent told CNBC. “It is going to work in Iran and we are going to collapse this regime.”

“It is time for our allies and the rest of the world to make a decision,” he said.

President Donald Trump warned on Wednesday of economic consequences against any country that provided “any type of lifeline to Iran” as the United States looks to resolve a war it began alongside Israel nearly six months ago.

“I think oil markets are misinterpreting what this economic pressure means,” Bessent said. Oil prices climbed to more than three-week highs on Thursday.

“We have asymmetric information, and I’m not sure why oil has popped up on this,” Bessent said. “If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart.”

When asked if the United States could target China for doing business with Iran, Bessent said many conversations were best to have in private.

“We are confident that everyone wants the Strait (of Hormuz) reopened, and for energy prices to come back down,” he said. “Keep in mind that the Chinese get 50 percent (of their) energy from inside the Gulf. So it would do them a big service to get with the program.”

China’s embassy in Washington did not immediately respond to a request for comment on Bessent’s remarks.

China buys more than 80 percent of Iran’s shipped oil, according to 2025 data from analytics firm Kpler. If the US engaged in further economic warfare with China, a major exporter to the US, including vital rare-earth minerals, it would risk retaliation.

Iran has weathered punishing economic sanctions for nearly 50 years, since the Islamic Revolution of 1979.

Iranian Foreign Minister Abbas Araghchi called Trump’s comments an attempt to divert American public opinion from domestic financial problems, including record debt and rising interest rates.