US says sanctions will 'squash' Iran's economy and 'collapse' its regime

 US Treasury Secretary Scott Bessent urged US allies to support Washington's efforts to "squash" the Iranian economy.

"We are going to collapse this regime. It is time for our allies and the rest of the world to make a decision," Bessent told broadcaster CNBC. "You are either with us or against us," he said.

Bessent's remarks come after US President Donald Trump said that countries providing "any type of lifeline" to the Islamic Republic's regime will face "tremendous economic consequences".

Bessent did not offer any insight on the measures Trump's team was looking to implement, but said the planned pressure campaign on the Iranian economy would minimise the need of a "large-scale kinetic restart" of the conflict.

The US and Israel started a war with Iran in February, arguing the strikes were to prevent Iran from developing nuclear weapons, which Tehran has consistently denied.

Iran, however, responded by attacking Israel, US bases across the Middle East as well as targeting Gulf Arab allies of the US. Since then, Iran has largely closed the Strait of Hormuz - the waterway through which some 20% of the world's oil and liquefied natural gas used to transit - causing wild fluctuations in prices on world markets.

The US and Iran agreed a ceasefire in April - and then another one in June, both aimed at facilitating negotiations to end the conflict. However, the truce has been consistently broken and talks appear to have stalled but, instead of returning to war, Trump is gearing up to unleash the "most crushing economic operation ever taken against any country".

Bessent said the new economic penalties will be part of "the greatest co-ordinated economic isolation in the history of the world". "If you insist on doing business with them, either transferring money, buying their oil... then the US Treasury and the US government will put [their] full might and force towards enforcing against you," the treasure secretary said referring to the US's international trading partners.

FULL REPORT AT: https://www.bbc.co.uk/news/articles/c87n90eg0p2o