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Economic pressure campaign begins
U.S. Defense Secretary Pete Hegseth said the Trump administration’s economic pressure on Iran is hurting the regime “the most right now,” while telling reporters in Oshkosh, Wis., that the U.S. would use “kinetic strikes” if necessary.
“economic pressure on Iran is hurting the regime “the most right now””
Hegseth framed the pressure as ensuring Iran has “the only choice” to “come to the table and actually talk about their nuclear program,” and he touted the U.S. naval blockade and said the U.S. controls the Strait of Hormuz.
Treasury Secretary Scott Bessent previewed the new economic pressure campaign, warning countries to cut off financial ties with Iran or risk being cut off from the U.S. dollar system.
Bessent said President Trump is making calls to world leaders while officials from the Defense, Treasury and State departments are connecting with their counterparts and demanding action in severing ties with Iran, and he warned, “I would expect that very quickly, if they do not respond, then you will see the ramifications of their actions.”
Operation Economic Outcast
Al Jazeera said the U.S. launched “Operation Economic Outcast,” with Scott Bessent vowing to target Tehran’s financial interests across the world and to “sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.”
Bessent told Al Jazeera that countries around the world must choose between the U.S. and Iran, stressing that the campaign exposes Tehran’s trade partners to secondary penalties, and he said, “no one is above the reach of US sanctions.”
Euronews reported that Bessent said, “Any entity facilitating money laundering on behalf of Iran will be expelled from the U.S. dollar system,” as the Treasury announced decisions against five critical sectors.
Euronews also quoted Bessent warning Iran faces “a very clear choice,” between “a total global isolation and a subsistence economy” or “a path back to normalcy, with the opportunity to reintegrate into the global economy.”
Markets, rivals, and escalation risk
CNN Arabic reported that China warned the new U.S. economic sanctions on Iran “will only heighten tensions,” with Foreign Ministry spokesperson Mao Ning saying “economic warfare and the so-called maximal pressure policy will not help resolve the issue.”
““will only heighten tensions,””
Mao Ning added that “China and Iran have long cooperated within the framework of international law,” and said cooperation should not be obstructed or undermined.
Al Jazeera net said markets largely ignored the new American sanctions on Iran as oil prices fell and gold steadied, with Brent crude futures falling 3% to $89.3 per barrel and West Texas Intermediate declining 3.22% to $83.27.
Al Jazeera net also said analysts warned Iran still retains the ability to respond by disrupting maritime shipping, keeping a premium over oil prices, and it noted the risk premium tied to potential disruption of navigation in the Strait of Hormuz remained in place.