Trump administration promises unprecedented economic sanctions on Iran next week

Treasury Secretary Scott Bessent announced that the US will impose unprecedented economic sanctions next week to isolate Iran. President Donald Trump is shifting toward economic pressure over military force, asking Americans to tolerate gasoline prices of $4.08 per gallon to block Iran's nuclear ambitions. The ongoing US naval blockade has already cost Iran billions in oil revenue, while recent drone attacks on commercial vessels in the Strait of Hormuz have further escalated regional tensions.

Unprecedented Iran sanctions announcement

• ▪US President Donald Trump vowed on August 14, 2026, to hit Iran hard economically, reinforcing Treasury Secretary Scott Bessent's announcement of upcoming restrictive measures.
• ▪US Treasury Secretary Scott Bessent announced on August 13, 2026, that the United States will implement unprecedented economic isolation measures against Iran starting next week.
• ▪The United States has frozen an estimated $500 billion in Iran-linked cryptocurrency as part of recent digital exchange sanctions.
• ▪The US Treasury Department's Office of Foreign Assets Control has imposed sanctions on more than 1,000 people, vessels, and aircraft since the start of Donald Trump's second presidential term.

US naval blockade operations

• ▪A tanker exiting the Strait of Hormuz sustained minor damage after being struck by a drone on August 13, 2026, according to the UK Maritime Trade Operations.
• ▪US War Secretary Pete Hegseth stated on August 13, 2026, that the United States could maintain its naval blockade on Iranian ports indefinitely.
• ▪Two Abu Dhabi National Oil Co. vessels were attacked on August 13, 2026, while transiting the Strait of Hormuz, which the United Arab Emirates condemned as acts of piracy by Iran's Islamic Revolutionary Guard Corps.

Iran economic damage assessment

• ▪Iranian President Masoud Pezeshkian blamed rising domestic inflation on the US blockade of Iranian ports and restrictions on the country's oil exports.
• ▪Majidreza Hariri, head of the Iran-China Joint Chamber of Commerce, stated on August 11, 2026, that the US naval blockade could cost Iran $18 billion annually.
• ▪The US naval blockade on vessels entering or exiting Iranian ports around the Strait of Hormuz cost Iran nearly $5 billion in oil revenue by early May 2026.

Potential secondary sanctions China

• ▪China purchases more than 80% of Iran's shipped oil, with independent 'teapot' refineries absorbing a significant portion of this trade, according to 2025 data from Kpler.
• ▪Trump administration officials are playing down US-China tensions ahead of an expected meeting between Donald Trump and Xi Jinping due to concerns that Beijing could restrict critical mineral exports.
• ▪The US Treasury Department has warned two large, publicly unidentified Chinese banks that they face secondary sanctions if Iranian funds are found moving through their systems.

Trump economic pressure strategy

• ▪US President Donald Trump urged Americans at a rally on August 14, 2026, to accept higher gasoline prices, which reached an average of $4.08 per gallon, to prevent Iran from developing nuclear weapons.
• ▪US President Donald Trump stated he is shifting toward economic pressure and 'low-keying it' with Iran, citing Iran's high inflation and lack of money.
• ▪US President Donald Trump asserted that the United States would take control of the Strait of Hormuz after defeating Iran.

5 sources