Bessent launches ‘Operation Economic Outcast’ targeting Iran’s global lifelines
WASHINGTON (TNND) — Treasury Secretary Scott Bessent on Monday announced “Operation Economic Outcast,” a sweeping new sanctions campaign targeting Iran’s global financial and trade links in what the Trump administration has called an “economic D-Day.”
“At President Trump’s direction, the United States Treasury has begun Operation Economic Outcast, an unprecedented campaign against the Islamic Republic of Iran and its neighbors,” Bessent said.
Trump last week said any country allowing its financial institutions, businesses, airports or government entities to provide Iran with “any type of lifeline” would face “tremendous economic consequences.”
Bessent compared the effort to the World War II D-Day campaign, saying the administration would target Iran’s financial connections “around the globe” with the objective of severing “every economic lifeline” sustaining the government “until Tehran stands alone.”
The Treasury Department issued new sectoral sanctions determinations targeting five areas Bessent described as Iran’s most vital foreign lifelines: digital assets, technology, gold, aviation and shipping. He said the measures broaden the risk of secondary sanctions for entities that continue doing business with Iran.
Treasury’s Office of Foreign Assets Control also sanctioned more than 60 entities, individuals and vessels that Bessent said help Iran procure nuclear and missile technology, conduct cyber operations or generate oil revenue.
Bessent said the administration has not publicly named the countries or entities it is pressuring, nor disclosed their deadlines to comply. But he said the U.S. is using “quiet diplomacy” to tell governments its expectations and warned that those that do not act will face consequences.
“No one is above the reach of U.S. sanctions,” Bessent said, warning that countries, companies and financial institutions that facilitate transactions helping turn Iranian oil into revenue would be targeted. He said entities that facilitate money laundering for Iran could be removed from the U.S. dollar system.
Asked about possible penalties against Chinese banks and shipping firms, Bessent did not name specific measures but said every country and entity should be prepared to face sanctions. China has historically purchased about 90% of Iran’s oil exports, NPR reported.
Bessent said the United Arab Emirates’ decision last week to halt business dealings with Iran was “likely causal,” suggesting it followed U.S. pressure. He said he expects a “broad array” of countries to take similar action as the administration continues its outreach.
He also previewed a continuing “wave of sanctions,” saying he expects a “major announcement” involving a financial institution by the end of the week. Bessent said the administration is giving countries an opportunity to remedy what he called bad behavior before imposing further secondary sanctions, adding that Treasury does not want to “blow up the global financial system.”
Iran has denounced the campaign as an “economic war.” Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, wrote on X that if the U.S. campaign continues, “not a single drop of oil” would be exported through the Strait of Hormuz or elsewhere in the Persian Gulf. He added that Tehran would view any country’s participation in or support for the campaign as “an act of war.”
The announcement came as Iran’s rial fell to a record low of 2.02 million to the U.S. dollar Monday, according to the Associated Press.