US launches Operation Economic Outcast to sever Iran's financial 'lifelines'

The US on Monday launched Operation Economic Outcast, a sweeping campaign intended to completely 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.

The US is "no longer managing the Iranian threat" but rather "ending it,” Bessent said, adding that the "strength of America's economy" enabled Washington to conduct such a financial offensive alongside military operations.

Directed by US President Donald Trump, the “unprecedented” sanctions target Iran’s "most vital lifelines," including aviation, shipping, gold, technology, and digital assets, he said.

Bessent also noted that the Treasury was blacklisting more than 60 entities, individuals, and vessels worldwide, significantly broadening secondary sanctions risks for any international party continuing to conduct business with Tehran.

He characterized the policy as the “economic asphyxiation of this regime.”

'No one is above the reach of US sanctions'

Bessent warned actors involved in the "ecosystem that turns Iranian oil into money" that they would be targeted and "have no one to blame but themselves," emphasizing that "no one was above the reach" of the new measures.

He also called on US partners to act, saying it was "no longer acceptable to operate in the gray spaces" of the conflict. Bessent said joint teams from the Treasury, State Department and military were meeting with counterparts around the world to deliver a clear message: every country has a "defined timeline" to shut down identified Iranian activities or face unilateral US action.

Also on China, Bessent said "the best way to engage with countries is through quiet diplomacy," adding that the US was currently "level setting" expectations with Beijing.

Bessent also described the United Arab Emirates’ recent decision to halt all trade and financial transactions with Iran as "causal" and a result of US pressure.

He said Treasury officials had mapped "every node, every facilitator, and every network" used by Tehran for oil smuggling and sanctions evasion. Bessent said the US was pursuing a "zero leakage approach," with "no minimal breathing space" for Iran to rebuild its capabilities as agencies "tighten the noose" on all revenue sources.

Bessent warned that any entity facilitating money laundering for Tehran will be permanently removed from the US dollar system.

"I would expect that you will see a major announcement of a financial institution being sanctioned by the end of this week," he further said without elaborating.

Trump is reportedly making personal phone calls to world leaders with specific requests to terminate interactions with the regime. "We are already seeing results," said Bessent.

“Those who stand with the United States will reap the rewards of our partnership,” Bessent added, warning that those who do not will share in the isolation of a "withering regime."

The offensive, which Bessent characterized as an "economic D-Day," follows claims from the 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.