US tells allies, China to back economic campaign against Iran

The United States on Thursday issued a stark warning to its allies and China, urging them to back a new economic campaign to "collapse" the Iranian government or face tough consequences.

US Treasury Secretary Scott Bessent delivered the message in an interview with broadcaster CNBC. He said further details would follow at a press conference on Monday.

What did the US say about its economic campaign against Iran?

Bessent said the campaign would be "the greatest coordinated economic isolation in the history of the world." He told allies they were "either with us or against us," and called on other countries to support US actions or face consequences.

Bessent said the goal was to "squash the economy" of what he called Iran's "murderous regime."

Why is the US pressuring China over Iran?

Asked whether Washington would pressure China specifically, Bessent said "many conversations are best to have in private." He called on Beijing "to get with the program," without detailing what pressure the US might apply.

Bessent said the new sanctions push would curtail Iran's ability to project power through its proxies.

Has the US pressure campaign worked so far?

Washington has issued a raft of new economic sanctions since US President Donald Trump launched the war with Tehran in late February. The Iranian government has managed to stay afloat despite those measures. Bessent insisted the new slate of sanctions would succeed, saying "we are going to collapse this regime."

Could this reduce US military action against Iran?

Bessent said the new economic pressure meant a ramp-up in US military operations against Iran was unlikely "for now."

"If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart, but I will emphasize that is for now," he said. He is set to hold a press conference on Monday to outline specifics of the campaign.