US Treasury Secretary threatens Iran with unprecedented economic isolation and continued Strait of Hormuz blockade
US Treasury Secretary Scott Bessent announced on Thursday, August 13, 2026, that Iran faces economic isolation "like the world has never seen" and a continued blockade of the Strait of Hormuz. This statement marks a shift in Washington's tone, as Bessent had previously suggested an imminent agreement to reopen the strait on August 4. Former President Donald Trump also indicated on the same day that Iran was seeking a deal, leading to a rise in Wall Street and a drop in oil prices. Bessent stated on Newsmax that the strategy would combine economic isolation with preventing anything from entering or leaving Iranian ports, promising further announcements next week. This verbal escalation occurs as the conflict, which began in late February with a US-Israeli offensive against Iran, approaches its sixth month. A June memorandum of understanding to end the conflict collapsed in early July, with Trump suspending strikes at the end of the month, conditional on a swift agreement. Trump had previously stated on August 1 that any agreement must include the "complete and total" opening of the Strait of Hormuz and "the end of the Iranian nuclear threat." The US President now appears to favor a more cautious approach based on economic pressure. On the ground, the Strait of Hormuz, which previously handled a fifth of global oil, remains a flashpoint. The United Arab Emirates condemned an Iranian attack on Thursday evening against two vessels affiliated with state oil company ADNOC, calling