US Treasury Secretary Scott Bessent publicly urged China to cooperate with what he called "the toughest sanctions in history" on Iran, telling allies they are "either with us or against us" and calling on Beijing to "get with the programme" [7][12][29][34]. Bessent framed the economic pressure campaign as a substitute for renewed military conflict, stating that maximum economic pressure means a large-scale kinetic resumption is unlikely and vowing to "collapse this regime" [8][25][40]. China's Foreign Ministry spokesman Lin Jian rejected the approach, stating that "imposing sanctions and pressuring do not help to solve the issue" and calling on relevant parties to resolve matters through diplomatic and political means [4][9][20]. The Chinese embassy in Washington separately stated that sanctions and pressure do not help resolve the Iran issue [5][34].
President Donald Trump announced the campaign on Truth Social as "the most crushing economic operation ever taken against any country," describing it as "Economic Warfare and Isolation on an unprecedented scale" and threatening "tremendous economic consequences" for any country providing a lifeline to Iran [1][13][16][27]. Trump listed activities to be halted immediately, including oil smuggling, money transfers, exchange houses, ship registrations, and front companies [13][24]. Vice President JD Vance described a "new phase" of economic pressure aimed at bringing the Islamic Republic to its weakest point in history, calling the approach a "delicate dance" because Iran will try to apply economic pressure in return [29][35].
Iranian Foreign Minister Abbas Araghchi dismissed Trump's "Economic D-Day" as a diversion from America's own economic crisis, citing unprecedented US debt and surging interest costs [5][8][22][31]. Araghchi stated that "doubling down on failed policies will only bring further defeat—and enmity of Iranians" and characterized US economic terrorism as a threat to the global economy and sovereignty worldwide [27][31]. Iran's Foreign Ministry condemned the sanctions as "economic terrorism" and "crimes against humanity" targeting the fundamental human rights of every Iranian citizen, stating the measures will not weaken Tehran's resolve to defend its independence and national sovereignty [12][29][32].
Analysts and former officials questioned whether the campaign can achieve its stated objectives. Eurasia Group senior analyst Gregory Brew assessed that any effective new economic measures would need to target Iran's trading partners, particularly China, which complicates enforcement given ongoing US-China trade negotiations and an expected visit from Xi Jinping [13]. Former US Ambassador James Jeffrey expressed skepticism that a decisive blow can be achieved after 20 years of US sanctions, noting Iran's familiarity with circumventing them [21]. Ali Vaez, Iran Project Director at the International Crisis Group, argued that for a regime fighting for survival, there is no collapse threshold [21]. Political scientist Sascha Lohmann characterized Trump's policy as "von Strategielosigkeit geprägt" (marked by a lack of strategy) [20]. Li Zixin, assistant research fellow at the China Institute of International Studies, described the shift to economic warfare as a strategic adjustment after military measures failed to achieve political objectives [26]. Qin Tian, deputy director of the Institute of Middle East Studies at the China Institutes of Contemporary International Relations, noted that the Treasury Department has not released specific implementation details and that previous US sanctions goals were not achieved [26].
The UAE halted all trade, commercial exchanges, and financial transactions with Iran until further notice [42]. Retired US general Mark Kimmitt said the move could hit Iran harder than anything Washington has imposed, given Dubai's role as Iran's most important trading partner [41]. International relations expert Eli Hindi, based in Abu Dhabi, said the decision reflects a shift from containment to economic pressure, noting that Gulf states do not easily sacrifice economic interests unless they sense an existential threat [43]. Iranian economist Nader Habibi said the importance of the UAE extends beyond goods to the role of Iranian residents and companies in facilitating transactions, and that the key factor is how strictly the UAE enforces the halt [43].
Iranian military and political figures warned of retaliation. Chief of Staff of the Iranian Armed Forces Ali Abdollahi warned Gulf countries that any assistance to the US military would be considered participation in American military operations [28][39]. Araghchi warned Bulgaria that any party participating in a military attack against Iran will be held responsible for the consequences [30]. A NATO official stated the alliance is prepared to defend all allies and highlighted that NATO air defense systems intercepted Iranian ballistic missiles targeting Turkey on four occasions [30]. Ibrahim Rezaei, spokesperson for the Iranian Parliament's National Security and Foreign Policy Commission, advocated withdrawing from the Nuclear Non-Proliferation Treaty as the most appropriate response to Washington's economic pressure [14].
Oman's Foreign Minister Badr Albusaidi rejected further escalation, stating that lasting security in the Strait of Hormuz requires a permanent peace in the region [7].
Ordinary Iranians described economic hardship from the sanctions and blockade. Arshia, a civil engineer in Isfahan, expressed concern that more sanctions will make it impossible for ordinary people to survive [38]. Mohsen, a resident of Bandar Abbas, said he was forced to close his import-export business and lay off 10 employees [38]. Hossein, a government employee in Yazd, said his salary runs out in a few days and meat and chicken have been removed from his family's table [38]. A resident in Khuzestan province said Iran's long experience with sanctions will allow it to overcome the additional pressure, though there may be an initial impact [25].
Bessent indicated he would hold a press conference to detail specific measures [10], and the campaign faces the question of whether China, which buys over 80 percent of Iran's shipped oil, will cooperate [7][13]. The Strait of Hormuz remains closed as the war nears its sixth month, with a US-established shipping corridor facilitating transits [6].