US pushes to isolate Iran economically

The United States is launching a financial campaign to economically isolate Iran, with US Treasury Secretary Scott Bessent saying Washington would apply unprecedented economic measures on Tehran as their differences over the Strait of Hormuz persist.

Conflicting claims by Iran and the US over one of the world's critical shipping lanes have kept Tehran and Washington apart, as mediators have struggled to break the stalemate since both sides signed the Islamabad Memorandum of Understanding in June.

Bessent said in his interview with US-based media Newsmax on Thursday that the measures would combine economic isolation with the continued blockade of the Strait of Hormuz to prevent anything from entering or exiting Iranian ports.

"Watch this space for more announcements," Bessent said, adding that the US is "going to apply measures like have never been seen in the history of economic isolation".

He said the US Treasury has targeted Iranian bank accounts, crypto wallets, and assets around the world, cutting off payments to both the leadership in the regime and the government itself.

After Operation Epic Fury, the US military campaign launched against Iran earlier this year, Bessent said the administration shifted its focus toward what the US Treasury calls Operation Economic Fury.

"We went from Epic Fury to Economic Fury," Bessent said. "And at the president's orders, we have raised the level even again."

Meanwhile, the United Arab Emirates' Ministry of Foreign Affairs issued a statement denouncing what it said was a "hostile Iranian attack" that targeted two vessels affiliated with the Abu Dhabi National Oil Company as they transited the Strait of Hormuz. No injuries were reported.

The UAE statement also stressed the need for Iran to halt these attacks, ensure its full commitment to an immediate cessation of all hostilities, and the complete and unconditional reopening of the strait.

Abdul Wahed Jalal Nori, a lecturer in the Department of Fundamental and Inter-Disciplinary Studies at the International Islamic University Malaysia, told China Daily that Washington's pressure may push Iran into deeper economic isolation, but maximum coercion does not necessarily translate into political capitulation.

Possibility of escalation

"It may instead harden Tehran's resistance and widen the regional confrontation. The real danger of this could transform pressure on Iran into a much broader crisis for regional and global economic security," said Abdul Wahed.

Iran has remained steadfast in its position over the Strait of Hormuz, most recently blaming the US and its allies for environmental damage and oil pollution washing up on Qeshm Island.

Ali Ozmaei, the commander of the Islamic Revolutionary Guard Corps Navy, said the Strait of Hormuz remains closed, Iran's Tasnim News Agency reported on Friday.

"The Strait of Hormuz is closed. Our control over movements is complete and decisive," Ozmaei was quoted as saying.

"No movement in this strait escapes the eyes of the IRGC Navy fighters," the commander stated. "The reality should be seen in the field, not in the communiques and statements of US officials," he added.

In recent weeks, Oman and Iran have stepped up bilateral discussions over the future management of Hormuz, signaling positive developments.

However, Iran has refused to link progress to a full reopening of the strait unless Washington "corrects its behavior", recently introducing six conditions that the US must adhere to.