Trump administration launches ‘economic D-Day’ against Iran, threatens trading partners
The Trump administration announced new sanctions targeting Iran and foreign entities conducting certain business with the country, aiming to choke off Tehran’s revenue amid a prolonged conflict.
The Trump administration unveiled a series of new sanctions against Iran Monday, aiming to cut the country off from the global economy and block its sources of revenue.
Treasury Secretary Scott Bessent outlined measures that extend beyond Iran’s borders to penalize foreign banks, companies, and countries that conduct specific business with Iran.
“Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system. The clock just started ticking,” Bessent said.
The campaign, called “Operation Economic Outcast,” expands secondary sanctions, allowing the United States to penalize foreign entities for certain business dealings with Iran. This approach is similar to actions taken against entities helping Russia evade sanctions following its invasion of Ukraine.
The expanded sanctions target five sectors: digital assets, technology, gold, aviation and shipping.
When asked about Iran’s major trading partner, China, Bessent said no country would be above the reach of U.S. sanctions.
Today’s initial sanctions target more than 60 entities, individuals and vessels. But Bessent said other countries and companies would be given time to cut their Iranian ties before facing additional penalties.
He explained that imposing the broader penalties immediately could upend the world’s economy.
“We are giving everyone the opportunity to remedy bad behavior. Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure period. But they should know that that will move very quickly and that we are serious,” Bessent said.
Trump commented on social media, stating, “IRAN IS COMPLETELY COLLAPSING.” Iran’s currency, the rial, hit a record low today.
Iran has warned of retaliation, with its Foreign Ministry spokesperson stating that any escalation would “undoubtedly bring about consequences.”