Struggling to resolve an unpopular war that has pushed up energy prices, the administration of President Donald Trump appears to be counting on further economic pressure, even though Iran has spent decades under layers of U.S. and international sanctions that have battered its economy but have not deterred its leadership.
Despite no major strikes by either side in weeks, the war shows little sign of reaching a diplomatic solution. The United States is seeking new ways to end Iranian attacks on ships in the Gulf and, more recently via its allies, in the Red Sea.
Almost six months have passed since the U.S. and Israel launched strikes on Iran. Thousands of people have died, most of them in Iran and Lebanon.
While the war has degraded much of Iran's conventional military capacity, inflicted economic pain and killed then-Supreme Leader Ayatollah Ali Khamenei, Iran has preserved enough missile and drone capability to attack Gulf neighbors and threaten oil tankers in the Strait of Hormuz.
The exact state of Iran's nuclear program, which the Americans and Israelis aim to wipe out, remains unknown.
Despite Monday's news, oil prices fell more than $2 a barrel, though investors braced for the prospect of further supply disruptions from the Middle East.
Asked why he stopped short of imposing penalties on Iran and declined to identify targeted countries, Bessent responded, "Why would I want to blow up the global financial system?"
He said he wanted to give countries and companies time to sever ties.
Bessent previously urged cooperation from China, the biggest buyer of Iranian oil for several years, although the U.S. blockade of Iran's ports, renewed in mid-July, has already cut Iranian oil flows to China.
Experts say Washington is wary of Chinese retaliation for any sanctions on its banks ahead of expected talks next month between Trump and Chinese President Xi Jinping, with any curbs on China's exports of critical minerals especially sensitive.
Asked about Chinese banks on Monday, Bessent said, "We want to make clear here today that no one is above the reach of U.S. sanctions."
The Chinese Foreign Ministry said sanctions and pressure tactics do not help and Beijing would do what was necessary to protect China's interests.
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