The United States has intensified its economic pressure on Iran by expanding secondary sanctions targeting third-party companies that engage in trade with the country. The sanctions focus on cutting off funding across various sectors of the Iranian economy, including digital assets, technology, gold, aviation, and shipping. This move comes as the conflict between the U.S. and Iran enters its sixth month, with the Trump administration ramping up economic sanctions following military pressure.
According to reports, U.S. Treasury Secretary Scott Vessen announced the so-called "Operation Economic Outcast" during a press conference at the Treasury Department on August 24. Vessen stated, "Our goal is to cut off every economic lifeline that supports this oppressive regime until Iran is left isolated."
The core of the newly announced sanctions involves imposing secondary sanctions on third-party companies that conduct business with Iran. The targeted sectors include digital assets, technology, gold, aviation, and shipping, aiming to pressure foreign companies and intermediaries that facilitate trade with Iran, thereby disrupting its international trade network.
The Treasury Department also designated approximately 60 Iranian-linked entities, individuals, and vessels associated with nuclear, missile, cyber, and oil networks as new targets for sanctions.
Additionally, the Treasury warned countries maintaining economic ties with Iran that they could face secondary sanctions, providing a grace period for compliance. It also indicated that significant sanctions targeting unnamed major financial institutions would be announced by the end of the weekend, hinting at further sanctions to come.
This action is part of a broader economic pressure campaign that Vessen had previously hinted at. In a Financial Times op-ed the day before, he described the measures as "the most powerful financial assault ever mobilized against an adversary."
However, Reuters noted that the U.S. did not specify which countries would be sanctioned or when. Notably, among the newly added Iranian-linked entities, individuals, and vessels, a major Chinese bank that supports oil transactions with Iran was not included. China is the largest buyer of Iranian crude oil, making the status of Chinese financial institutions a critical factor in the effectiveness of the U.S. pressure campaign.
Iran immediately reacted to the new U.S. economic sanctions. According to Reuters, Iranian Minister of Economic Affairs Ali Madani Zadeh stated in an interview with state television, "We are fully prepared for U.S. sanctions."
Al Jazeera reported that Mohsen Rezaei, Secretary of Iran's Supreme National Security Council, warned that if Trump's "economic war" continues, Iran could halt its oil exports in the Gulf region and consider actions by countries supporting U.S. sanctions as "acts of war."
Despite the announcement of new U.S. sanctions, market reactions were surprisingly calm. Following the announcement, Brent and WTI crude prices fell by 2%. On the London ICE Futures Exchange, October Brent crude settled at $92.17 a barrel, down $2.22 (2.35%). On the New York Mercantile Exchange, October WTI also dropped $2.05 (2.35%) to close at $85.01 a barrel.
* This article has been translated by AI.
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