President Donald Trump on Wednesday warned of economic consequences against any country that provided "any type of lifeline to Iran" as the United States looks to resolve a war it began alongside Israel nearly six months ago.
"I think oil markets are misinterpreting what this economic pressure means," Bessent told CNBC.
Oil prices climbed to more than three-week highs on Thursday,
"We have asymmetric information, and I'm not sure why oil has popped up on this," Bessent said.
"If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart."
When asked if the United States could target China for doing business with Iran, Bessent said many conversations were best to have in private.
"We are confident that everyone wants the Strait (of Hormuz) reopened, and for energy prices to come back down," he said.
"Keep in mind that the Chinese get 50 per cent (of their) energy from inside from the Gulf. So it would do them a big service to get with the program."
In a social media message on Wednesday, Trump promised "Economic Warfare and Isolation on an unprecedented scale," although details were scant.
"ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences," Trump wrote.
He did not say what specific steps the US. would take or name any country.
Iran has weathered continuous punishing economic sanctions for nearly 50 years, since the Islamic Revolution of 1979.
Iranian Foreign Minister Abbas Araqchi called Trump's comments an attempt to divert US public opinion from domestic financial problems, including record debt and rising interest rates.
He said the US insistence on policies he described as failed would bring further failures and alienate Iranians.
Thousands have been killed in the war, which quickly drew in Gulf countries and shocked global markets as Iran flexed its ability to curb shipping through the Strait of Hormuz, which carried about a fifth of the world's traded oil before February.
The US and Iran have twice announced ceasefire deals, in April and June, aiming to restore the free flow of shipping through Hormuz on a path towards ending the conflict, but both quickly crumbled even as Israel has largely withdrawn from the fighting.
Iran entered the war with high inflation, a weakening currency, energy shortages, sanctions and deep structural weaknesses, and must now contend with damaged infrastructure, disrupted trade, lost production and the cost of rebuilding.
President Masoud Pezeshkian acknowledged the economic toll in remarks on state television last week, in which he blamed high inflation on a US blockade of Iranian ports and sanctions on Iran's oil exports.
8°C