• Treasury Secretary Scott Bessent says President Trump is directly contacting world leaders to cut economic ties with Iran.
  • The administration pledges the toughest sanctions in history as part of a broad isolation campaign.
  • Oil prices remain sensitive to tensions and any potential reopening of the Strait of Hormuz.

Trump's Economic Blitz on Iran

Treasury Secretary Scott Bessent revealed that President Donald Trump has been making direct phone calls to world leaders, urging them to sever economic ties with Iran. The disclosure, made during a briefing on Thursday, underscores the administration's aggressive push to cripple Tehran's economy through unprecedented sanctions and diplomatic pressure.

"The President is personally engaging with allies and partners to ensure that Iran is economically isolated," Bessent said. "We are imposing the toughest sanctions in history, and we will not relent until the regime changes its behavior."

The remarks come amid heightened Iran-U.S. hostilities, with military tensions simmering and the status of the Strait of Hormuz—a critical oil chokepoint—in flux. Crude prices have fluctuated in recent weeks as traders weigh the risk of supply disruptions against any potential diplomatic breakthroughs.

A Multi-Front Strategy

The administration's approach combines punitive tariffs, secondary sanctions, and asset freezes targeting Iran's oil exports, banking sector, and key industries. According to people familiar with the matter, the Treasury is preparing additional designations on entities linked to Iran's Revolutionary Guard Corps and its drone and missile programs.

"This is a full-court press," said a former U.S. official who requested anonymity to discuss the strategy. "They are leaving no stone unturned to cut off Iran from the global financial system."

Efforts to rally international support have hit some snags, with European allies expressing reservations about the potential impact on their own companies and the stability of energy markets. However, Bessent emphasized that "the President's personal touch has been effective in bringing many nations on board."

Oil Market Jitters

The Strait of Hormuz remains the focal point of market anxiety, with Iran previously threatening to close the waterway in response to U.S. pressure. While no formal closure has occurred, shipping insurers have raised premiums for tankers traversing the region.

"The risk premium in oil prices is elevated," said a commodities analyst at a major bank. "Any escalation could easily push Brent above $90 a barrel." Without a deal to de-escalate tensions, the volatility is likely to persist.

When asked about the possibility of military action, Bessent declined to elaborate, noting only that "all options remain on the table." Iran's mission to the United Nations did not respond to a request for comment.

Correction: An earlier version of this article misstated the date of Bessent's remarks. The briefing occurred on Thursday, not Wednesday.