U.S. pushes allies, China to back Trump’s economic war on Iran
The U.S. Treasury Secretary Scott Bessent has announced a new campaign of economic isolation against Iran, aiming to collapse the regime through coordinated international pressure. This shift emphasizes economic sanctions over military action as the war approaches its six-month mark.
Why it matters
The escalation of economic warfare against Iran has significant implications for global oil markets, international diplomacy, and the stability of the Middle East.
The United States on Thursday (August 20, 2026) warned allies and China to join President Donald Trump ’s new campaign to isolate the Iranian economy, vowing that Washington would “collapse this regime” in Tehran.
U.S. Treasury Secretary Scott Bessent’s comments underscored how Mr. Trump is shifting to economic rather than military pressure on Tehran as the war drags toward the six-month mark.
Iran branded the U.S. threats as “economic terrorism” and said they would fail.
Under fire at home over the impact of the war and with crucial midterm elections looming, Trump had on Wednesday (August 19, 2026) promised the “most crushing” economic operation ever against Iran.
“It is going to work in Iran and we are going to collapse this regime,” Mr. Bessent told U.S. broadcaster CNBC .
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