U.S. readies unprecedented ‘economic isolation’ plan for Iran

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Or sign-in if you have an account.Vessels transit the Strait of Hormuz off Bandar Abbas in southern Iran on August 10, 2026. Photo by ATTA KENARE / AFP via Getty ImagesThe U.S. will soon announce unprecedented economic measures against Iran, Treasury Secretary Scott Bessent said, intensifying the Trump administration’s effort to force Tehran’s capitulation after almost six months of war.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation on a country,” Bessent said in an interview with Newsmax on Thursday. The move will be part of a “one-two punch” that includes the continued blockade of Iran’s ports, he added.Fighting erupted on Feb. 28 when the U.S. and Israel staged airstrikes on Iran, which responded with missile and drone attacks against American allies across the Middle East. Thousands of people were killed, mostly in Iran, before a truce was agreed in June.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againTalks aimed at bringing about a lasting peace have stalled and intermittent clashes have continued, disrupting the flow of oil and other key commodities from the region.Iran’s economy has taken a major hit, with much of its industrial capacity damaged and crude exports severely curtailed by the U.S. blockade. But the Islamic Republic has weathered waves of sanctions that have failed to force it to bend on its nuclear program or relinquish control over the Strait of Hormuz.U.S. President Donald Trump in recent days has renewed his administration’s push for economic pressure on Iran as the U.S. faces a shortfall of necessary munitions and appears wary of expanding a military campaign that’s faces mounting domestic opposition heading into midterm elections in November.Trump told Axios over the weekend that he is “low-keying it” with Iran. “We are just watching Iran with its huge inflation and the fact they have no money,” he said.Iran, for its part, has reorganized its military to be more aggressive abroad as talks on ending the war remain mired in stalemate, a sign that Tehran is preparing for the possibility of a protracted era of regional conflict.The U.S. has added some 2,200 sanctions on Tehran since 2018, according to Jeremy Paner, a partner at Hughes Hubbard & Reed, who tracks designations on Iran’s oil and petrochemical sectors.“If 47 years of sanctions haven’t broken Tehran’s will, more of the same is unlikely to produce any changes,” according to a Bloomberg Economics report led by Jennifer Welch. She sees the most likely scenario as Trump staying on the same path as before, maintaining sanctions and the blockade, alongside limited strikes and diplomatic efforts.The Strait of Hormuz has been a key sticking point. Both sides claim control of the waterway, through which one-fifth of the world’s oil and gas transited prior to the war, and are demanding concessions that are unlikely to be met.Iran and Oman have been locked in lengthy talks about establishing a shipping route through the strait, but the U.S. isn’t party to those discussions. Mohsen Rezaee, the newly appointed secretary of Iran’s Supreme National Security Council, said any deal would remain separate from a full reopening.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Two Abu Dhabi National Oil Co. vessels were attacked while transiting Hormuz on Thursday evening, the United Arab Emirates’ state news agency WAM reported. No one was injured and the situation has been brought under control, it said.The UAE’s foreign ministry condemned the strike, saying in a statement that targeting commercial shipping and using the strait as a tool of economic coercion or blackmail constituted “acts of piracy” by Iran’s Islamic Revolutionary Guard Corps.Meanwhile, the U.K. Maritime Trade Operations said it received a report from military authorities of a tanker being struck by a drone on Thursday while exiting Hormuz. The vessel sustained minor damage and the crew are all safe and accounted for, it said.The U.S. forces’ ability to escort ships through Hormuz is growing and crude flows from the region will continue to increase, with the “pinch” in the oil market stemming from refining rather than deliveries, U.S. Energy Secretary Chris Wright told Fox News on Thursday.Vice President JD Vance told the TV channel that the first goal in the war with Iran is keeping the price of oil and gasoline cheap for Americans, and that the U.S. has “a lot of tools at our disposal to compel action” from Iran.Brent crude prices rose as much as 1.9 per cent to almost US$88.69 a barrel on Friday, lifting the global benchmark’s gains for the week to more than five per cent.Israel has sat out recent clashes in the Persian Gulf, while pursuing operations against Iran-backed militias in Gaza and Lebanon.Prime Minister Benjamin Netanyahu has said Israel is poised to resume attacks on the Islamic Republic if asked by the U.S., but members of his government have also said economic pressure could suffice to topple its government.“What will ultimately bring down the regime is its weakening, primarily that of its economy,” Finance Minister Bezalel Smotrich said in a July 21 interview with Tel Aviv 103 FM radio station, remarks that were echoed by his cabinet colleagues. “The current situation, in which there is an embargo, economic pressure and sanctions, is best for us.”With assistance from Dan Williams, Magdalena Del Valle, Patrick Sykes, Ryan Chua, Sherif Tarek, Jon Herskovitz and Natalie ChoyNotice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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