U.S. Treasury Secretary Scott Bessent said on Thursday that Washington is unlikely to restart large-scale combat operations against Iran, choosing instead to intensify economic pressure nearly six months into the conflict.
Bessent and President Donald Trump unveiled the new economic operation as negotiations to reopen the Strait of Hormuz and end the war collapsed. The Treasury secretary described the campaign as the most far-reaching set of measures the United States has assembled against Tehran.
In a shift in emphasis, Bessent said the administration would lean on sanctions and financial isolation rather than renewed military action. The war, which began earlier this year, continues without a clear end in sight.
He directly called on China to back the effort. “Keep in mind, the Chinese get 50 per cent of their energy from the Gulf. So, it would do them a big service to get with the programme,” Bessent told CNBC when asked whether the new sanctions would target China.
Bessent said “many conversations” were underway with international partners over the measures. He framed Chinese participation as a matter of Beijing’s own energy security, given its heavy reliance on Gulf oil supplies routed through the Strait of Hormuz.
The appeal places China in a delicate position. Beijing has long opposed unilateral U.S. sanctions and remains one of the largest buyers of Iranian crude. Chinese officials have not indicated they will join the operation.
The economic campaign follows Trump’s earlier warnings to nations aiding Tehran. In recent months the president had framed the pressure on Iran in stark economic terms, cautioning third countries against continued trade with the Iranian government.
Talks over the Strait of Hormuz, a passage that carries a large share of global seaborne oil, broke down before Thursday’s announcement. Their failure removed the most immediate path to a ceasefire and prompted the pivot to economic tools.
Bessent did not detail the full scope of the sanctions or name specific entities targeted. He also did not rule out limited military strikes, distinguishing those from the larger operations that defined earlier phases of the war.
The administration is expected to outline further steps in the coming days as it seeks support from allies and pressures Beijing to reduce its purchases of Iranian energy.