US launches 'Operation Economic Outcast' to choke Iran's global financial ties

The Trump administration has initiated a broad economic offensive against Iran, dubbed "Operation Economic Outcast," aiming to sever its financial ties globally and isolate it from the international economy. U.S. Treasury Secretary Scott Bessent described the move as an "economic asphyxiation" of the Iranian regime, emphasizing an "onslaught" against its financial connections.

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We are launching an economic onslaught against Iran’s financial connections around the globe.

The Treasury Department will intensify secondary sanctions on five key sectors Iran utilizes to evade sanctions and generate revenue: digital assets, technology, gold, aviation, and shipping. Approximately 60 entities, individuals, and vessels worldwide have been sanctioned for their support of Iran's nuclear and missile programs, cyber operations, and oil revenue generation. Bessent stated that the Treasury has identified "every node, every facilitator, and every network" Iran uses for smuggling oil and evading sanctions, with the objective of cutting off all economic lifelines.

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Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.

Crucially, the U.S. has not immediately imposed blanket secondary sanctions on major countries, including China, which is estimated to purchase 80% to 90% of Iran's crude oil exports. Bessent indicated a "cure period" for governments and companies to wind down dealings with Iran, but warned of limited patience. The effectiveness of this campaign hinges significantly on Washington's ability to persuade key trading partners like China and Russia to cooperate, as Iran has historically circumvented U.S. sanctions through these channels.

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We do not have infinite patience here.

Bessent also announced that a major financial institution doing business with Iran would face sanctions later in the week, and that President Trump has been personally contacting foreign leaders to cease specific transactions with Tehran. The recent decision by the United Arab Emirates to suspend all trade and financial transactions with Iran was noted as "not coincidental." The administration's approach presents a significant challenge, particularly concerning China, with Bessent issuing a broad warning that "no one is above the reach of US sanctions."

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No one is above the reach of US sanctions.