Between August 24 and August 30 this week, US Treasury Secretary Bessent has confirmed that the specific actions for the "unprecedented economic isolation" of Iran will be publicly announced on the 24th. This follows President Trump's declaration of an "unprecedented" economic war against the country. In addition, Bessent has issued an ultimatum demanding that nations choose to side either with the United States or against it.

According to reports, Iceland will hold a national referendum on August 29 to decide whether to restart negotiations on joining the European Union. Iceland originally applied for EU membership in 2009 but suspended talks in 2013, which were later halted. If Icelandic citizens vote in favor of starting accession talks, the government will notify the EU, allowing formal negotiations to resume.

Federal Reserve Chair Warsh is scheduled to deliver the keynote address at the global central bank symposium in Jackson Hole, Wyoming, on August 28. This will mark his first appearance at the annual gathering since assuming the role of Fed Chair, with markets closely watching his latest remarks on inflation, employment, and the future trajectory of monetary policy.

US to Formally Announce Specific Measures in "Unprecedented" Economic War Against Iran

Treasury Secretary Bessent announced on August 20 that he would hold a press conference on the 24th to unveil the specific details of the "unprecedented" economic sanctions against Iran. He also demanded that US allies and other economies take a definitive stance on the Iran issue.

President Trump first disclosed this plan on the 19th, stating that because Iran missed the window for reaching an agreement with the US, he would implement the "most destructive economic action ever taken against a nation," describing it as an "unprecedented economic war and isolation campaign."

In an article published in a British newspaper on the 23rd, Bessent wrote: "At dawn, an economic Normandy landing has begun—the largest financial offensive ever launched against an adversary."

US media analysis suggests that Washington will deploy all enforcement tools to impose secondary sanctions on countries and companies that continue business dealings with Iran, targeting three main categories of trade: purchasing Iranian oil; transferring remittances to Iran; and ship-to-ship transfers of Iranian crude at sea.

Notably, when outlining the sanctions measures, Bessent added that large-scale military action is not expected to be necessary. He also issued his "pick a side" declaration, stating that the Trump administration requires US allies and other nations to cease trade with Iran. In an interview with a US business news network, he said the US would use "all its power" against any country that fails to comply.

Chinese Foreign Ministry Spokesperson Lin Jian, responding on August 21 to a question about the US demand for the international community to choose sides on Iran, stated that China opposes illegal unilateral sanctions that lack a basis in international law and are not authorized by the UN Security Council. He called on all relevant parties to take responsible measures and resolve the issue through political and diplomatic channels.

Iceland to Hold Referendum on Resuming EU Accession Talks

Iceland will hold a national referendum on August 29 to decide whether to resume EU accession negotiations that were suspended in 2013. Iceland first applied for EU membership in 2009, but talks stalled following a government change in 2013. By 2015, Iceland declared it "should not be regarded as an EU candidate country." However, its application was never formally withdrawn.

Icelandic Prime Minister Kristrún Frostadóttir has previously stated that given the country's current geopolitical situation, "now is an excellent time for Iceland to join the EU." She praised the EU's recent performance, noting it was a key reason for accelerating the referendum process. Recent polls show a near tie between those favoring negotiations on EU membership and those opposed.

The Icelandic government has indicated that if a majority votes "no" in the referendum, EU accession talks could be shelved for an extended period, though the country could maintain close ties with the EU through existing partnerships. Iceland, along with Norway and Liechtenstein, is already part of the European single market, the Schengen open-border travel area, and the European Free Trade Association (EFTA).

Analysts suggest that fisheries and monetary sovereignty could prove to be stumbling blocks for Iceland's EU accession. Fishing is a pillar of Iceland's economy and a symbol of national identity. There are concerns that joint resource management under the EU's Common Fisheries Policy would open Icelandic waters to foreign vessels. Additionally, retaining the Icelandic króna allows the country to weather economic fluctuations, depreciating against the euro and dollar during downturns and appreciating during periods of strong economic performance.

If Iceland were to formally join the EU, it would expand the bloc's influence in the Arctic region. Iceland is a NATO member without its own military and, like Greenland, sits on crucial Arctic shipping routes. In a July interview, Frostadóttir noted that President Trump's repeated assertions about annexing Greenland were a significant factor driving her government's push to restart EU accession talks.

Fed Chair Warsh's "Debut" at Global Central Bank Symposium

Fed Chair Warsh will attend the global central bank symposium in Jackson Hole on August 28 and deliver the keynote address. This will be his first speech at the annual event since becoming Fed Chair, with markets focused on his latest views regarding inflation, employment, and the future monetary policy path.

With inflation remaining elevated and concerns over fiscal deficits keeping US Treasury yields high, Warsh faces increasing pressure to act like his predecessors and provide clearer guidance on the Fed's approach for the remainder of the year. Following the Fed's policy meeting in July, Warsh offered few comments on the economic situation and provided no guidance on the interest rate outlook. Investors interpreted his remarks as lacking commitment to bringing inflation back to target levels, and long-term bond yields subsequently climbed to their highest levels in two decades.

Current long-end US Treasury yields remain elevated. On August 21, the 10-year yield closed at 4.74%, while the 30-year yield closed at 5.27%. Against this backdrop, Warsh's speech and his stance on the future rate path will be a significant factor influencing the US bond market's trajectory.

A survey of academic economists conducted by a prominent business school for a British newspaper showed that most respondents are increasingly concerned that the Fed will need more time to control inflation, with some also criticizing the communication approaches of both Warsh and Bessent. Warsh is reportedly facing mounting pressure over his methods of communicating economic policy.

His Jackson Hole speech is expected to outline the framework behind his streamlined communication style. An economist from a US university was quoted as saying, "What is unsettling is Warsh's reluctance to provide a clear, public assessment of the current state and outlook of the US economy." He added, "This invites unnecessary speculation, risks undermining market stability, and intensifies concerns about the Fed's credibility."