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US unveils “Operation Economic Outcast” to pressure Iran’s trading partners
Sanctions experts said the plan could escalate if Washington targets not just Iranian entities but also Chinese financial institutions and oil buyers tied to Iran’s revenue.
US sanctions experts say the Trump administration’s new campaign to economically isolate Iran could intensify the pressure on Tehran, but they warned it will only be effective if Washington follows through with concrete enforcement actions.
According to RFE/RL, US Treasury Secretary Scott Bessent unveiled what he called “Operation Economic Outcast” on August 24, describing it as an effort to force Iran’s trading partners to choose between maintaining commercial ties with Tehran and access to the US financial system.
The reporting notes Bessent announced few immediate measures, leaving open whether the US will move beyond sanctions aimed at Iranian entities and smaller intermediaries to directly target Chinese financial institutions and oil buyers that help fund Iran’s revenue.
The same source said the approach could provoke a response from Beijing, potentially raising the risk of renewed trade tensions ahead of Xi Jinping’s scheduled visit to Washington on September 24.