Treasury Secretary Bessent threatens to 'squash' and 'collapse' Iran's economy as allies face pressure to choose sides.
Published
The United States on Thursday re-designated Lebanese Hezbollah as a Specially Designated Global Terrorist organization, explicitly describing the armed group as operating "in service to the Iranian regime under the command of Iran’s Islamic Revolutionary Guard Corps-Quds Force." The Treasury Department simultaneously announced new sanctions targeting an alleged Hezbollah financing network, intensifying pressure on both the militant group and its Tehran sponsor.
Treasury Secretary Scott Bessent framed the measures as a comprehensive campaign to strangle Iran's economy, declaring the sanctions would "squash" Iran's economy and ultimately "collapse" its regime. Speaking Thursday, Bessent warned US allies they must decide whether they "are with us or against us" – a pressure tactic signaling Washington expects full cooperation from international partners.
The re-designation marks a significant escalation in how the US legally characterizes Hezbollah, explicitly embedding the group within Iran's command structure rather than treating it as an independent entity. The new sanctions targeting financing networks aim to sever Hezbollah's economic pipelines, which US officials say flow through Iranian channels.
Bessent said he plans a Monday news conference to "talk about exactly what we're going to do," suggesting the announced measures represent only the initial phase of the sanctions offensive.