US Treasury Secretary Scott Bessent on Wednesday claimed that Iran’s oil industry is "creaking" under the weight of an ongoing US naval blockade and added that Kharg Island, Iran’s primary oil export terminal, is nearing its maximum storage capacity.
In a social media post, Bessent claimed that Iran’s ability to sustain oil production "will soon collapse", causing permanent damage to the country’s oil infrastructure.
"Kharg Island, Iran’s primary oil export terminal, is soon nearing storage capacity, which will force the regime to reduce oil production, resulting in an additional approximately $170 million per day in lost revenue, and causing permanent damage to Iran’s oil infrastructure. Treasury will continue to exert maximum pressure and any person, vessel, or entity facilitating illicit flows to Tehran risks exposure to US sanctions," Bessant wrote on X.
Detailing the broader economic strategy, Bessent said the Treasury Department is intensifying financial restrictions through "Operation Fury" to target Iran's shadow fleet and proxies supporting oil trade.
"The Treasury Department, through Economic Fury, has targeted Iran’s international shadow banking infrastructure, access to crypto, shadow fleet, weapons procurement networks, funding for terrorist proxies in the region, and independent Chinese “teapot” refineries that support Iran’s oil trade. These actions have disrupted tens of billions of dollars in revenue that would be used to fund terrorism," he wrote.
According to Bessent, these measures are aimed at choking off tens of billions of dollars in revenue used to facilitate global terrorism.
These remarks coincided with comments made at a White House state dinner. Addressing Britain’s King Charles III and other dignitaries, US President Donald Trump said Iran has been "militarily defeated", marking his first public assessment of the conflict during the royal visit.
"We have militarily defeated that particular opponent," President Trump said. Emphasising a unified stance with the British monarch, he added, "Charles agrees with me even more than I do -- we're never going to let that opponent have a nuclear weapon."
Separately, a report by The Wall Street Journal said President Trump has directed aides to prepare for a prolonged blockade of Iran. Officials said the strategy is aimed at increasing pressure on Iranian financial resources by restricting maritime traffic to and from its ports, with the goal of extracting concessions on Tehran’s nuclear programme.
