US to choke Iran’s economy: Port blockade to cut oil revenue, Treasury Secretary Scott Bessent warns amid ceasefire extension
US Treasury Secretary Scott Bessent has indicated a major economic push against Iran, saying efforts to block Iranian ports and restrict oil exports will continue. He warned that such measures could severely disrupt Iran’s economy. His remarks come even as US President Donald Trump has extended the ongoing ceasefire with Iran but decided not to lift the blockade around the Strait of Hormuz.
Blockade to Hit Iran’s Oil Lifeline
In a post on X, Bessent said Trump has made it clear that the US Navy will maintain the blockade of Iranian ports. According to him, the move could soon fill up storage facilities on Kharg Island, a critical hub for Iran’s oil trade, forcing oil wells to shut down. This, he said, would significantly limit Iran’s revenue.
“Iranian ports will continue to be blocked. This move by the US Navy will fill up storage at Kharg Island, which is the most crucial island for Iran’s oil trade. With Iran’s oil wells shutting down, its maritime trade will be restricted and the main source of revenue for the government sitting in Tehran will be cut off.” Scott Bessent
Targeting Iran’s Revenue Streams
Bessent further stated that restricting Iran’s maritime trade would directly impact the government’s primary income sources. He emphasized that the US would continue applying “economic fury” to maximize pressure on Tehran. The goal, he said, is to weaken Iran’s ability to move money in and out of the country.
The Treasury Secretary also warned of action against those assisting Iran. He noted that individuals or vessels involved in covert trade or financial transactions linked to Iran could face US sanctions. He added that the US is freezing funds linked to what he described as corrupt leadership in Iran.
Trump Extends Ceasefire, Keeps Pressure Intact
On Wednesday, President Donald Trump announced an extension of the ceasefire with Iran. The decision came just hours before the existing truce was set to expire and followed a request from Pakistan. Trump said the ceasefire would remain in place until a proposal is received from Iran, noting that its government appears deeply divided.
At the same time, Trump confirmed that US forces would continue enforcing the blockade. The
decision follows unsuccessful talks with Iran held in Pakistan last week, after which the US moved to tighten restrictions around the Strait of Hormuz and Iranian ports.
Rising Tensions Around Strait of Hormuz
Since April 13, the US Navy has been enforcing the blockade under Trump’s orders. The aim is to prevent Iran from exporting oil, increasing pressure to push Tehran toward an agreement. Iran, however, has made lifting the blockade a key condition for any negotiations.
Trump also commented on Iran’s stance regarding the Strait of Hormuz, suggesting it is driven more by political signaling than economic interests. He said Iran does not want the strait to be closed, as keeping it open allows the country to earn approximately $500 million daily.