US threatens Iran with unprecedented economic isolation as Gaza ceasefire diplomacy continues

US Treasury Secretary Scott Bessent has threatened to subject Iran to economic isolation "like the world has never seen before", saying new measures are expected next week. The warning comes as Washington continues to apply pressure on Tehran while also trying to keep wider Middle East diplomacy on track. The same day, officials linked to the Gaza ceasefire process said Jared Kushner and other members of the US-backed Board of Peace will travel to Israel and Cairo in the coming days.

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According to the confirmed schedule, Kushner, Board of Peace high representative Nickolay Mladenov and executive board member Tony Blair are due to arrive in Israel on Sunday before travelling to Cairo. The trip is intended to advance plans for an end to the conflict in Gaza after a deal announced by the Trump administration ran into Israeli opposition. Meetings involving a Palestinian technocratic group that is expected to assume control of Gaza under the US-brokered ceasefire arrangement have been taking place in Cairo for several months.

The developments underline two linked but distinct pressure points in the region. On one side, Washington is signalling a tougher economic line against Iran, with Bessent indicating that further action is imminent. On the other, it is trying to preserve the fragile ceasefire framework in Gaza, where implementation has already faced political resistance.

The Board of Peace was established by President Donald Trump to oversee the ceasefire process, giving the latest travel plans added political weight. The remarks from Vice President JD Vance also pointed to the broader strategic and economic stakes. He said the top US priority in the Iran conflict was keeping oil and petrol prices low for Americans, placing that ahead of preventing Tehran from obtaining a nuclear weapon.

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That position differed from Trump's repeated framing that the war's sole purpose was to stop Iran from getting a nuclear weapon, even if Americans faced short-term economic costs. The comments also reflected the growing focus on the Strait of Hormuz, a critical shipping route that has become central to the dispute. Tensions around the strait have already affected regional shipping and energy security.

The United Arab Emirates condemned an Iranian attack it said targeted two vessels linked to state-owned Abu Dhabi National Oil Company as they passed through the waterway. Iran has imposed what the report described as an effective blockade of the strait and wants to charge users for passage, a move the United States strongly opposes. Iran is also in talks with Oman over arrangements for the strait's future management, showing that the dispute is now extending beyond sanctions into control of maritime access.

What remains unclear is the exact form of the new US measures against Iran and whether they will alter Tehran's position on the strait or on wider negotiations. It is also not yet clear how far the Gaza ceasefire talks in Israel and Cairo can progress while political opposition remains. The coming week is likely to be watched closely for both the sanctions announcement and the outcome of the diplomatic mission led by Kushner and other officials.

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