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The United States on Monday launched “Operation Economic Outcast,” a sweeping campaign intended to isolate Iran from the global financial system, Treasury Secretary Scott Bessent announced.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent told reporters.
Directed by U.S. President Donald Trump, the sanctions target what Bessent called Iran’s “most vital lifelines,” including aviation, shipping, gold, technology and digital assets.
The Treasury Department said it had expanded the sectors of the Iranian economy subject to secondary sanctions, bringing five new areas under the threat of such measures.
“Treasury has issued determinations against five critical sectors, digital assets, technology, gold, aviation, and shipping, that the Iranian regime uses to try to prop up its failing economy,” the department said in a statement.
Bessent warned that any entity facilitating money laundering for Tehran would be removed from the U.S. dollar system.
“Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system. The clock just started ticking,” Bessent said.
He said a major sanctions announcement targeting a financial institution was expected by the end of the week, without providing details.
“I would expect that you will see a major announcement of a financial institution being sanctioned by the end of this week,” he said.
Asked whether Chinese banks dealing with Iran could be targeted, Bessent said “no one is above the reach of U.S. sanctions.”
Bessent characterized the campaign as an “economic D-Day” and described the pressure effort as “economic asphyxiation” of Iran’s government.
“We are going to hold everyone accountable, and this is economic asphyxiation of this regime,” he said.
He warned that countries declining to join the U.S. sanctions campaign would “share in the isolation” of Iran.
Bessent said Trump was making calls to world leaders asking them to stop interactions with Tehran.
The Treasury chief earlier declared in a Financial Times column that an “economic D-Day” had begun against Iran.
The move follows claims by the Trump administration that Iran’s military and nuclear infrastructure have been dismantled.
Trump recently asserted that Tehran is facing 350% inflation and can no longer pay its security forces.
Bessent’s announcement came nearly six months into the war with Iran, which remains locked in a stalemate.
Peace talks have stalled, while Iran continues to prevent most traffic through the Strait of Hormuz, a crucial route for global energy supplies.
The United States and Israel triggered the Middle East war with a major wave of strikes against Iran on Feb. 28, sparking Iranian retaliation across the region.
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