The US has announced an expansion of secondary sanctions it hopes will ‘sever every economic lifeline’ that sustains Iran.
Launching ‘Operation Economic Outcast’ at a Press conference, Treasury Secretary Scott Bessent yesterday unveiled what he described as an ‘economic D-Day’ that aims to give a final warning to countries to cut their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system.
“We are launching an economic onslaught against Iran’s financial connections around the globe,” he said.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said.
The move is part of US efforts to put pressure on Iran to end the attacks on ships in the Gulf and, more recently via its allies, in the Red Sea, that Tehran launched after the US and Israel began air strikes against it in February.
Iran has spent decades under layers of US and international sanctions that have battered its economy but have not deterred its leadership.
Bessent previously urged co-operation from China, the biggest buyer of Iranian oil for several years, although the US blockade of Iran’s ports, renewed in mid-July, has already cut Iranian oil flows to China.
Experts say Washington is wary of Chinese retaliation for any sanctions on its banks ahead of expected talks next month between US President Donald Trump and Chinese President Xi Jinping, with any curbs on China’s exports of critical minerals especially sensitive.
Asked about Chinese banks, Bessent said: “We want to make clear here today that no one is above the reach of US sanctions.”
The Chinese foreign ministry said sanctions and pressure tactics do not help and Beijing would do what was necessary to protect China’s interests.
Bessent said the US Treasury Department has mapped the networks, facilitators and financial channels that Iran uses to smuggle oil and evade sanctions.
He said Washington would be working with US partners to target any source of Iran’s ‘illicit revenue’.
The new sanctions come as Iran’s currency has dropped to a record low of more than 2,000,000 rials per US dollar, two websites tracking the free market rate showed.
Iranian President Masoud Pezeshkian admitted on Sunday that his country’s citizens face ‘many problems’ due to the US sanctions.
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