‘Economy is the regime’s Achilles’ heel’: Expert weighs in on financial war against Iran
WASHINGTON (TNND) — The Trump administration on Tuesday announced what it described as a sweeping new effort to cut off Iran’s access to the global financial system, warning that any entity accused of helping Tehran launder money could be shut out of transactions involving U.S. dollars.
Janatan Sayeh, a research analyst at the Foundation for Defense of Democracies, told The National News Desk the move is “very likely to maximize U.S. leverage.” (TNND)
“Let me be clear. Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system,” said Treasury Secretary Scott Bessent. “The clock just started ticking.”
Bessent announced the launch of Operation Economic Outcast, which the administration is calling an “economic D-Day against Iran.” The stated goal is what was described as “the single greatest financial offensive ever,” aimed at “severing every remaining lifeline” through sweeping secondary sanctions targeting oil, finance, shipping and foreign enablers.
Janatan Sayeh, a research analyst at the Foundation for Defense of Democracies, told The National News Desk the move is “very likely to maximize U.S. leverage.”
“What we’ve seen is that, of course, the economy is the regime’s Achilles’ heel,” Sayeh said.
He added that whether economic pressure alone could lead to the collapse of Iran’s government would depend on what other strategies accompany it.
So if the idea is to inflict so much pressure to ensure that there’s going to be an internal opportunity for the United States to capitalize on, then we would have to look at this latest announcement as the means and not the end towards dealing or one way or another, neutralizing the threat from Tehran,” Sayeh said.
Sayeh said ordinary Iranians could feel the effects quickly, starting with currency devaluation and then inflation. He pointed to fuel subsidies as a key pressure point, saying Iran’s government has indicated it will have to remove or reduce some of those subsidies.
He added that Iran’s national police chief has “officially stated that they’re anticipating more protests because of the economic implications that was imposed by them on the United States.”
The administration’s approach also hinges on whether major buyers of Iranian oil and facilitators of financial flows comply with U.S. demands. Asked about countries such as China, India and Turkey, Sayeh said Bessent “was very clear” that noncompliance would bring U.S. sanctions and could cut banks off from protections.
“So it’s either they play ball, as you know, noted, or the risk of facing U.S. sanctions on their key financial institutions,” Sayeh said.