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24 Aug 2026, 00:13

Scott Basset, the U.S. Treasury Secretary, warned countries that continue their financial and trade relations with the Islamic Republic that they must choose between cooperating with Tehran and maintaining access to the United States and the global financial system.

In an article published in the Financial Times, Scott Basset emphasized that the Trump administration intends to cut off all financial and trade channels to the Islamic Republic, placing Tehran and its cooperating countries and entities in complete economic isolation. He is set to announce details of the new U.S. government's actions against the Islamic Republic at a press conference on Monday, September 2, and has warned that continued cooperation with the Iranian regime will jeopardize these countries' access to capital and global markets.

The U.S. Treasury Secretary announced the beginning of a new and extensive phase of economic pressure against the Islamic Republic, describing it as an "economic turning point" and the largest organized financial assault against an enemy.

In this note, Basset referred to the Tehran Conference of 1943, stating that the Allied leaders at that time were seeking ways to exert "the maximum possible pressure on the enemy." According to him, history has now posed the same question to Tehran once again, and it is time for the United States to respond with full force.

He emphasized that Donald Trump, the President of the United States, has significantly diminished the Iranian regime's military capabilities using U.S. military power and has weakened the country's nuclear program. Basset added that Washington has now entered the "final phase" and wants to complement military pressure with a broad assault on the Islamic Republic's financial and commercial resources.

The U.S. Treasury Secretary further described the Islamic Republic as a regime that has played a destructive role both inside Iran and beyond its borders over the past 47 years. He stated that corruption and the regime's policies have led an economy that could have been one of the world's strongest to ruin, while innovative and entrepreneurial people in Iran face repression.

Basset also accused the Islamic Republic of maintaining a network of proxy groups outside Iran to continue violent and terrorist activities. He said the United States has paid a heavy price in confronting this network, although it is not the only country facing the consequences of its activities.

According to the U.S. Treasury Secretary, despite the widespread threats posed by Tehran's policies, Washington has often found itself alone in its determination to confront the Islamic Republic.

Basset attributed the severe devaluation of the rial and the high inflation rate in Iran to the Trump administration's policies. He stated that the Iranian economy has been so weakened that the value of the national currency has reached its lowest level, and inflation has approached one of the highest historical levels.

He reminded that the last hope of the Islamic Republic is the continued cooperation of countries that, out of fear or economic considerations, believe that compromising with Tehran can bring them security or lasting peace.

Without naming specific countries, the U.S. Treasury Secretary said some foreign governments and entities continue to purchase and transport Iranian oil and facilitate the transfer of the country's financial resources through currency exchanges and free trade zones.

He noted that some countries also allow Iranian flights to operate, register ships on behalf of Tehran in their offices, and turn a blind eye to illegal fuel transfers between ships at sea and the illegal use of their banking systems. Basset accused these countries of simultaneously trying to conceal the extent of their cooperation with the Islamic Republic.

He stated that these countries operate on the calculation that appeasement with Tehran is a safer option compared to standing up to it; however, they must also consider the consequences of aiding the survival of the Islamic Republic.

To explain this dilemma, Basset referenced the views of Blaise Pascal, the 17th-century French philosopher. According to him, Pascal believed that uncertainty does not exempt humans or nations from judgment but obliges them to assess risks more accurately; because in such circumstances, the cost of a miscalculation can be heavier.

The U.S. Treasury Secretary said that "Pascal's wager" now applies to the vital arteries of Iran's economy. He stated that countries that continue to provide financial resources to the Iranian regime to avoid Tehran's reaction are effectively strengthening the very regime they fear.

Basset warned that these countries have crossed the threshold of U.S. tolerance and must choose between continuing cooperation with the Islamic Republic and maintaining their economic relations with the United States and the global financial system.

He stated that Trump is doing what previous U.S. presidents refrained from doing: ending a threat that previous administrations had been content to manage and contain.

According to Basset, the American political class has accepted an endless cycle of provocative actions by the Islamic Republic for decades, while it should have pursued U.S. interests with greater determination. He said that another generation should not live under the shadow of the threat posed by forces that chant "Death to America" and seek to achieve the Islamic Republic's nuclear goals.

The U.S. Treasury Secretary argued that the complete financial isolation of Tehran could reduce the need for the direct use of U.S. military force while simultaneously increasing the security and freedom of action of Washington's allies.

He also proposed incentives for countries that cut their financial and trade ties with Iran. Basset stated that severing cooperation with Tehran could enhance these countries' access to global capital, strengthen confidence in their markets, and improve their desired position in the international economy.

Conversely, he warned that countries that maintain their relations with Tehran may lose the path to sustainable prosperity. He noted that in countries where investor and global market confidence declines, illegal financial activities typically expand.

Basset stated that any country acting as a financial artery for a declining regime should expect to share in its isolation. He added that a country that becomes a haven for terrorist activities will be viewed by the United States as a pariah in the world.

The U.S. Treasury Secretary accused the Islamic Republic of offering extortion in the form of security guarantees over the years and exploiting the fears of other countries regarding Tehran's retaliatory actions.

According to him, the power of the Islamic Republic has been based on a calculation that considers Iran's response as certain, while viewing the implementation of U.S. threats as negotiable. Basset stated that with Trump's return to power, this era has ended, and countries that fear standing up to Tehran should not underestimate the cost of testing Washington's resolve.

He added that Trump has created conditions for the U.S. government to utilize all institutions, legal authorities, and tools that many thought Washington would never resort to.

Basset warned that any remaining connections with Tehran could accelerate the economic isolation of countries and related entities, whether this connection was established knowingly or whether governments and companies deliberately ignored it.

The U.S. Treasury Secretary also warned about the possibility of a military response from the Islamic Republic. He stated that if, alongside the weakening of Iran's economy and the reduction of the regime's grip on power, Tehran were to take military action against U.S. forces or neighboring countries in the Persian Gulf, Trump would respond "swiftly and decisively."

Basset concluded by describing the U.S. government's goal as cutting off all economic arteries that support the survival of the Islamic Republic. He stated that pressures would continue until Tehran is placed in complete isolation.

He once again referenced Pascal, considering the decision of countries cooperating with the Iranian regime as a choice about their future, and asked whether these countries are willing to jeopardize their future in the face of a new wave of U.S. pressures.
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