US Treasury Secretary Scott Bessent announced on August 21, 2026, that the US will impose its most severe economic sanctions yet on Iran to force a total collapse of its financial system.
The new measures target Iran's oil exports and banking sector, with the US warning that any nation continuing to partner with Tehran will face 'tremendous' economic consequences.
The US has specifically urged China to cooperate with these sanctions, aiming to isolate Iran globally following recent escalations in the Strait of Hormuz.