• Trump is calling leaders to ask them to cut ties with Iran
• Wants ‘zero leakage’ on sanctions
• Countries will ahve a finite timeline to shut down activities we have identified, if they don’t we will use Treasury authorities
• Will not set specific timelines for cutting ties, we don’t have infinite patience
• Every country should be prepared to face US sanctions if they support Iran
• I expect a major financial institution to be sanctioned this week
• Do not take use of secondary sanctions lightly
• Would like Canada to come to the table and negotiate in good faith

I’m surprised to see oil lower today. There is a real debate on how much oil Iran is blocking in the Strait but eventually it’s a number that matters and the US has entered some kind of war of attrition.

On the bond market, says Treasury hasn’t bought back a single bond yet btu the first operation will be Sept 9.

Update: This was a great exchange.

Reporter: You described this as an economic D-Day, but D-Day wasn’t a threat of an invasion and the US didn’t give a timeline to Germany. So why not impose the sanctions today?

Bessent: Why would I want to blow up the global financial system?

This article was written by Adam Button at investinglive.com.