The United States on August 20 urged allies and China to join a new campaign by President Donald Trump aimed at economically isolating Iran and causing the government in Tehran to collapse.
US Treasury Secretary Scott Bessent said that Trump is shifting the focus from military to economic pressure on Tehran as his unpopular war nears the six‑month mark. Facing domestic criticism over the war’s fallout and ahead of the midterm elections, Trump on August 19 pledged to launch the “most devastating” economic operation against Iran. “This will work in Iran, and we will bring down this regime,” Bessent told CNBC.
Engaging China and international isolation
Bessent said Washington expects both allies and rivals to join the intensified campaign. “This will be the largest coordinated economic isolation in world history. We are telling them: you are either with us or against us,” he added, addressing allies.
When asked whether the United States would pressure China, Bessent replied that “many conversations are better held privately,” but urged Beijing to “join this campaign.” Chinese President Xi Jinping is scheduled to visit the White House on September 24, and Iran is expected to be a discussion point, as it was during Trump’s May summit in Beijing.
Bessent noted that the economic plan reduces the chance the United States will need to resume large‑scale military operations against Iran. “If we apply maximum economic pressure, a large‑scale military resurgence is unlikely, at least for now,” he said. He will provide further details of the measures against Iran at a press conference on August 24.
Iran’s reaction and military deadlock
Iran rejected Trump’s plan. “The so‑called ‘Economic D‑Day’ is a distraction from America’s own crisis: unprecedented debt and rising interest costs,” Foreign Minister Abbas Araghchi posted on X. Iran’s Foreign Ministry called the sanctions threats “economic terrorism.”
Trump said earlier this week that negotiations with Iran are suspended because the war launched by the US and Israel on February 28 has stalled. Tehran has partially blocked the Strait of Hormuz, while Washington maintains a naval counter‑blockade. Trump insisted Iran must not be allowed to develop nuclear weapons under any agreement. Yet nearly six months of fighting have not forced Tehran to abandon uranium enrichment or its nuclear energy plans.
A new US aircraft‑carrier strike group arrived in the Middle East on August 19 after harsh conditions aboard the long‑deployed carrier sparked fresh domestic criticism of Trump’s war. The USS George Washington is replacing the USS Abraham Lincoln, which reportedly suffered food shortages, plumbing problems and a series of suicide attempts during its deployment that began in November 2025.
Trump’s August 19 promise to launch an unprecedented “economic war” against Iran came amid growing frustration over the lack of progress on the military front. In a post on his platform Truth Social, he announced “THE MOST DEVASTATING ECONOMIC OPERATION EVER CARRIED OUT AGAINST ANY COUNTRY! This will be an economic war and isolation of unprecedented scale.”
The US has backed tough sanctions against Iran for decades. During his first term (2017‑2021), Trump intensified them as part of a “maximum pressure” strategy and withdrew from the nuclear deal negotiated by his predecessor Barack Obama. Despite strict sanctions, Iran continues to export oil, with China remaining the largest buyer. Tehran also uses a shadow fleet of tankers that operate under international sanctions.
Source: The Straits Times
