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Operation Economic Outcast
US Treasury Secretary Scott Bessent announced the launch of “Operation Economic Outcast” to sever Iran’s economic lifelines, vowing that the US would target “all of Iran’s sources of revenue, including oil” and expose Tehran’s trade partners to secondary penalties.
““Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,””
Bessent said “no one is above the reach of US sanctions,” adding that if countries and entities “facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted,” as the campaign begins nearly six months into the war with Iran.
The sanctions push is framed as “economic D-day,” with Bessent likening it to the Allies’ forces landing on French shores to push back against Nazi Germany during World War II.
Al Jazeera also reported that Iran’s Foreign Minister Abbas Araghchi dismissed the US pressure, stressing that economic sanctions against Iran are nothing new, while Pentagon chief Pete Hegseth said Iran cannot handle the economic pressure and would have “no choice” but to return to the negotiations table to discuss its nuclear programme.
Secondary pressure and responses
China’s Foreign Ministry spokesperson Zhao Lijian said Beijing would defend its interests with full resolve after Washington disclosed plans to “strangle” Iran and imposed sanctions on several entities, warning that economic warfare and maximum pressure tactics “do not solve problems; they only fuel the conflict.”
Zhao also said “China will take all necessary measures to safeguard its rights and interests with full resolve,” while the BBC reported that the US Treasury had issued decisions impacting five sectors: digital assets, technology, gold, aviation, and maritime shipping.
Iran’s response included threats tied to the Strait of Hormuz, with EL PAÍS reporting that “Hours before the United States announcement, Iran threatened 46 ships with fines or outright seizure” over alleged violations of navigation protocols.
EL PAÍS also quoted Mohsen Rezaei warning that if neighboring countries joined the US economic war against Tehran, they would be considered enemies and “therefore, attacked,” while the BBC reported that U.S. Treasury Secretary Steven Mnuchin said, “No one is immune to American sanctions.”
What’s at stake next
Arab News described the campaign as an “economic D-Day” aimed at giving a final warning to countries to sever their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system, while also noting that the Treasury has issued determinations against five critical sectors: digital assets, technology, gold, aviation, and shipping.
““economic D-Day””
The same report said China has for several years been the biggest buyer of Iranian oil, and that Washington has intensified efforts to clamp down on Chinese purchases but “has so far stopped short of designating larger Chinese banks,” as Tehran promised to retaliate against expanded US sanctions.
In parallel, Al Jazeera reported that the US Treasury imposed fresh sanctions on 60 entities, vessels and individuals across the world, including in the United Arab Emirates, Hong Kong, China, Singapore and Switzerland, accusing them of enabling the “Iranian regime’s recklessness.”
Al Jazeera also quoted Sina Toossi, a fellow at the Center for International Policy, saying “economic D-day” looks like an effort to intensify pressure now that the military campaign has failed to deliver a decisive outcome, with “Hormuz remains heavily disrupted, and the costs to the US and global economy are mounting.”