Bessent says US to impose 'toughest' ever sanctions on Iran, urges China to cooperate

Iran has weathered punishing economic sanctions for nearly 50 years, since the Islamic Revolution of 1979. Iranian Foreign Minister Abbas Araqchi called Trump's comments an attempt to divert American public opinion from domestic financial problems, including record debt and rising interest rates.

"I think oil markets are misinterpreting what this economic pressure means," Bessent said on Thursday. Oil prices climbed to more than three-week highs on Thursday.

"We have asymmetric information, and I'm not sure why oil has popped up on this," Bessent said. "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart."

When asked if the U.S. could target China for doing business with Iran, Bessent said many conversations were best to have in private.

"We are confident that everyone wants the Strait (of Hormuz) reopened, and for energy prices to come back down," he said. "Keep in mind that the Chinese get 50% (of their) energy from inside the Gulf. So it would do them a big service to get with the program."