Treasury Secretary Scott Bessent recently issued a stern warning that the United States is facing a level of national security threat unseen since the 1970s oil embargo. His remarks, delivered in numerous high-profile speeches and interviews, underscore how supply chain vulnerabilities, trade imbalances, and overreliance on geopolitical rivals now deeply threaten American economic and national security interests.

A Forgotten Lesson from the 1970s

The 1973 oil embargo, imposed by OPEC, triggered severe energy shortages, astronomical fuel prices, and a consequential global economic downturn. That era revealed how fragile U.S. energy security could be—and how reliant the nation was on foreign suppliers. Bessent argues that today, the U.S. confronts parallels far broader than just energy dependency: a systemic susceptibility rooted in hollowed-out manufacturing sectors and disrupted supply chains that directly jeopardize both economic resilience and security.

Modern-Day Vulnerabilities

Trade Deficits & Hollowed-Out Manufacturing

At a recent Institute for International Finance conference, Bessent pointed out how sustained U.S. trade deficits—driven by intentional policy moves from other nations—have decimated America’s manufacturing base and compromised its supply chains, spelling dark implications for national security . These vulnerabilities, he cautioned, cannot endure.

Energy Geopolitics & Strategic Risks

Drawing clear comparisons to the oil embargo era, Bessent highlighted the U.S.’s precarious dependence on adversarial energy sources. He slammed the Biden administration’s sanctions policies on Russian energy as weak and politically motivated, calling for much more forceful action to neutralize threats to U.S. security. By shutting off strategic oil streams—especially from adversaries like Russia and Iran—the U.S. can better ensure economic and geopolitical autonomy.

Escalating Tensions with China

Bessent also flagged China’s procurement of Russian oil as highly problematic. He indicated that continued purchases by China could trigger punitive tariffs—potentially as steep as 100%—under current congressional legislation, reflecting the administration’s readiness to defend against emerging energy threats and strategic manipulation

A New Strategic Vision

Bessent is advancing a bold strategic framework in which economic security is inseparable from national security. His approach emphasizes:

Aggressive Targeted Tariffs & Sanctions
Designed not just for revenue, but as strategic levers to compel trade parity and secure supply chain reliability. He envisions them as weapons complementing traditional national defense tools

Reshaping Trade Alliances
By pushing for structural reforms and reciprocal agreements, particularly with countries aligned on shared security interests, Bessent aims to construct a more resilient and fair international trade architecture

Reinforcing U.S. Dollar & Financial Systems
Asserting that the dollar must remain the world’s reserve currency, he defends Fed independence and harnesses U.S. financial strength to support global leverage—continuing a long-standing tradition of economic supremacy as a cornerstone of national defense

Why This Feels Like the 1970s All Over Again

Disruptions in Critical Resource Chains
Just as the 1970s embargo underscored oil scarcity, today’s vulnerabilities span beyond energy—covering semiconductors, pharmaceuticals, and rare earth minerals—many of which are concentrated in geopolitical rivals’ hands.

Economic Leverage as Strategic Prowess
The oil embargo era introduced the world to the idea of economic constraints as coercive tools. Bessent is expanding this roadmap via sanctions and tariffs as instruments of national strategy.

Reversing Decades of Industrial Erosion
The deindustrialization of U.S. manufacturing over decades echoes the hollowing-out that made the 1970s so perilous. Corrective action, he argues, must come now—or risk an untenable security future.

Implications for U.S. Policy and Global Order

Domestic Resilience
Strengthening manufacturing, rebuilding domestic supply networks, and diversifying sourcing are steps toward reducing reliance on hostile actors.

Geopolitical Leverage
Strategic economic instruments—tariffs, sanctions—provide non-military tools to influence global behavior, negotiate from strength, and deter adversarial dependencies.

Allied Alignment
Encouraging allies to shoulder security burdens—through trade reciprocity and shared defense costs—enhances the collective stability of international systems

Strategic Autonomy Through Finance
Preserving dollar dominance and financial control empowers the U.S. to isolate destabilizing actors and safeguard the global order.

Conclusion

Scott Bessent’s framing—that the U.S. faces “a national security risk not seen since the oil embargo”—is not hyperbole, but a sober diagnosis. Energy shocks have evolved into multifaceted supply-chain and economic vulnerabilities. Garnering attention, this mindset signals a shift toward economic instruments of power and underscores an urgent need to reevaluate how the U.S. safeguards its sovereignty.