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US sanctions aim to 'squash' Iran's economy and destabilize its regime

US Treasury Secretary Scott Bessent called on allies to support new sanctions to cripple Iran's economy and regime. He warned that aiding Iran would have severe consequences, as the US gears up for a major economic pressure campaign.

BRIC Team
By BRIC Team · BRIC.TV
Published Aug 20, 2026 · 2 min read · 170 views
US sanctions aim to 'squash' Iran's economy and destabilize its regime

Key Takeaways

  • US Treasury Secretary urges allies to support intensified sanctions on Iran
  • Sanctions aim to collapse Iran's economy and reduce military escalation
  • Upcoming press conference will detail new sanctions measures
  • Iran's economy is already strained by decades of sanctions and protests

US Treasury Secretary Scott Bessent has urged allies to join Washington's push against Iran, saying the goal is to "squash" the Iranian economy and bring down the regime. Speaking to CNBC, Bessent declared, "You are either with us or against us, " stressing the need for international partners to back US efforts.

His comments follow President Donald Trump's warning that any nation aiding Iran would suffer severe economic consequences. While Bessent withheld specifics about upcoming sanctions, he suggested the economic pressure aims to reduce the chances of military conflict.

Since February, the US and Israel have conducted military operations targeting Iran, citing its nuclear ambitions, which Tehran denies. Iran has retaliated by targeting US bases and allies, causing heightened tensions and disrupting global oil supplies, especially through the Strait of Hormuz.

Despite ceasefire attempts in April and June to facilitate talks, truce efforts have repeatedly failed. Instead of renewing military action, Trump is preparing what he calls the "most crushing economic operation ever" against a country. Bessent described the new sanctions as "the greatest coordinated economic isolation in history."

He cautioned that any foreign entities trading with Iran, including oil purchases, would face full US enforcement. A press conference on August 24 will reveal more about the sanctions.

The Iranian economy, already weakened by decades of sanctions, has been further strained by protests over rising living costs. In the year before February 2026, basic necessities rose by 60%, with food prices doubling. During the unrest, Trump encouraged protesters, promising "help is on the way." Following the protests, military actions against Iran intensified, leading to a blockade of Iranian ports.

In April, the US targeted foreign banks and companies linked to Tehran with sanctions, as military efforts to topple the regime faltered. The operation, called "Economic Fury, " aimed to cripple Iran's war capabilities by cutting off revenue streams and imposing a naval blockade on exports.

Iran has faced sanctions since the 1979 Islamic Revolution, yet has maintained control, suppressing recent protests. Residents in Khuzestan expressed doubt about the new sanctions' impact, suggesting Iran's experience with economic pressure might help it adapt and persevere.

While acknowledging potential economic strain, they doubted the regime's downfall.

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