U.S. Vows 'Toughest Sanctions in History' on Iran
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- Scott Bessent said on Thursday (August 20, 2026) that the U.S. will impose 'the toughest sanctions in history' on Iran, explicitly suggesting the economic squeeze could reduce the need for new major military operations.
- Donald Trump threatened 'Economic Warfare' on August 19, 2026, warning of consequences against any country that provided 'any type of lifeline to Iran.'
- The U.S. warned allies and China to join Trump's new campaign to isolate Iran's economy, with Washington vowing it would 'collapse this regime' in Tehran.
- Bessent framed the sanctions push as the primary lever against Tehran, replacing kinetic options with a stated maximum-pressure economic strategy.
Why it matters: The U.S. is explicitly substituting economic warfare for further military escalation against Iran, while coercing allies and China into the isolation. The Globe and Mail's parallel coverage flags the immediate market reaction — oil prices hitting a three-week high — as buyers price in the supply risk from an intensified sanctions regime.
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