US launches sweeping new sanctions offensive against Iran

The US Treasury Department launched a new economic offensive against Iran on Monday, called "Operation Economic Outcast". The goal is to cut off every channel of financing for the Tehran government.

Treasury Secretary Scott Bessent presented the initiative as a decisive move, one Washington had earlier billed as a true "economic D-Day" against Iran. According to Bessent, the administration wants to eliminate every economic resource that sustains the regime and block every possible source of revenue. For Iran, he said, only two paths remain: normalization of relations or isolation.

Broader secondary sanctions

At the heart of the strategy is the expansion of secondary sanctions. They no longer target only Iranian actors, but also banks, companies, intermediaries and third countries that keep giving Tehran access to markets and financing. Bessent warned that anyone laundering Iranian money would lose access to the dollar system. President Donald Trump is reportedly also contacting several world leaders directly, asking them to cut economic ties with Iran.

The Treasury targeted five sectors that, according to Washington, the Iranian government uses to sustain its economy: digital assets, technology, gold, aviation and maritime transport. The sanctions cover almost 60 entities, individuals and vessels in total.

China has for years been the main buyer of Iranian oil. Washington has stepped up efforts to limit Chinese purchases, but has so far avoided directly sanctioning the major Chinese banks that could facilitate the crude trade. According to the Reuters news agency, shipments to China have nonetheless already declined: to around 534,000 barrels a day in August, down from 823,000 in July and a peak of 1.58 million in previous months. Much of the trade runs through independent Chinese refineries and commercial and financial channels that Washington now intends to target.

Beijing said it would closely follow developments and take the measures needed to protect its interests. Chinese foreign ministry spokesperson Lin Jian reiterated his country's opposition to unilateral coercive measures, saying sanctions and pressure do not help solve problems.

Bessent announced that a new wave of sanctions would follow quickly, with a major financial institution expected to be hit as early as this week. He said the announcement also serves as a final warning to countries and companies that maintain ties with Tehran: correct course or risk exclusion from the dollar-based financial system.

The new crackdown comes after nearly six months of conflict, in a stalemate in which peace negotiations remain stalled. The Strait of Hormuz remains at the center of tensions, while Washington keeps up naval pressure on Iranian exports.