Trump: Iran 'completely collapsing' as Treasury Sec. warns of 'economic D-Day' for regime

Trump's post came as the US Treasury is expected to broaden the scope of secondary sanctions it can impose on entities and countries that maintain business ties with Iran.Follow us on GoogleUS President Donald Trump speaks during a campaign rally for U.S. Senator Darline Graham (R-SC) at the Myrtle Beach Convention Center in Myrtle Beach, South Carolina, US, August 21, 2026. (photo credit: REUTERS/Evan Vucci)ByREUTERS, JERUSALEM POST STAFFAUGUST 24, 2026 15:56Updated: AUGUST 24, 2026 16:58US President Donald Trump claimed that Iran is completely collapsing in a post on Truth Social on Monday.The post came as the US Treasury is expected to broaden the scope of secondary sanctions it can impose on entities and countries that maintain business ties with Iran, as the Trump administration seeks to increase economic pressure on Tehran, a source familiar with the plans told Reuters.The action is aimed at giving a final warning to countries to sever their business ties with Iran in an effort to force an end to the nearly six-month conflict that has bottled up the Strait of Hormuz and Gulf energy exports, said the source, who spoke on condition of anonymity due to not authorized to speak publicly about the matter.The source said that US Treasury Secretary Scott Bessent also intended to provide a broader overview of an economic pressure campaign against Iran that he and Trump have described as an "economic D-Day," and would make it clear to countries that they must side with the US or risk having key companies and entities cut off from the dollar-based financial system.Bessent last week billed the action against Iran as the "toughest sanctions in history," saying that along with the US naval blockade of Iranian ports, they would reduce the need for new "kinetic" military operations against Iran.US Treasury Secretary Scott Bessent stands behind U.S. President Donald Trump who speaks to the media on the day of a NATO leaders' summit in Ankara, Turkey, July 8, 2026. (credit: REUTERS/UMIT BEKTAS)The US has maintained sanctions against Iran for decades, most of which have been aimed at curtailing the country's oil revenues, aviation sector, cryptocurrency, procurement of weapons components and other military hardware, and cutting off funding for business enterprises controlled by the Islamic Revolutionary Guard Corps, a dominant force in the Iranian economy.The sanctions bar designated entities from the dollar-based financial system, but Iran has been successful in quickly standing up new front companies, other entities and vessel registrations to evade the sanctions.Bessent plan to include additional categories of sanctioned conductThe source familiar with Bessent's plans said the action is likely to reveal additional categories of Iran-related conduct that would be subject to secondary sanctions in the future, making it easier to take action against those facilitating the transactions on behalf of the Iranian government.The source did not specify the activities that could be subject to sanctions, but said that for certain Iranian sectors, any activity, even in a third country, could be subject to secondary sanctions.The Treasury currently approves licenses for transactions in a number of sectors in Iran, including for medicine and medical devices, cultural and arts exchanges and agricultural transactions.A senior administration official said Bessent is expected to warn that any remaining financial lifelines, including through banks and third countries that have tolerated certain activity, must be shut down.The official, who also spoke on condition of anonymity, said the Treasury has "mapped Iran's oil-smuggling and sanctions-evasion network" and will present this information to countries helping Iran evade the sanctions as a warning.Follow us on Google