US unveils ‘economic onslaught’ against Iran

Iran’s top negotiator has dismissed the latest threat from Washington as empty “bombast”

US Treasury Secretary Scott Bessent has announced new sanctions against Iran, and threatened to boot any country dealing financially with Tehran out of the US dollar system, in a bid to make Iran an “economic outcast.”

The new sanctions target nearly 60 entities, individuals, and vessels in multiple jurisdictions that allegedly trade in “illicit nuclear and missile technology” with Iran, aid Iran’s “cyber operations,” and move Iranian oil, the US Treasury Department said in a statement on Monday. More than a third of the sanctioned entities and individuals – 21 – are based in China.

The Treasury also said it had identified digital assets, technology, gold, aviation and shipping as areas for potential secondary sanctions.

Speaking at a press conference later on Monday, Bessent went further, announcing the beginning of “Operation Economic Outcast,” which he described as “an economic onslaught against Iran’s financial connections around the globe.”

In the Second World War, D-Day marked the historic beginning of a campaign with our allies to target and drive the enemy from its positions, including those in third countries. Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections… pic.twitter.com/1fLyobUucu

— Treasury Secretary Scott Bessent (@SecScottBessent) August 24, 2026

Bessent explained that the US would penalize any country refusing to sever its economic ties with Tehran. “Any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system,” he said, adding “the clock just started ticking.” 

Iran exports goods to 147 countries, and imports from 114, according to the most recent data from the World Bank. Asked how the US intends to force three quarters of the world’s nations to cease trade with Iran, Bessent said that US President Donald Trump phoned multiple world leaders over the weekend “with specific requests to cease their interactions” with Iran, and that every country had been given “a defined timeline” to comply with his demands. 

Read more

Bessent refused to share any more details, telling reporters that “we’re not going to name names,” nor was he “going to set timelines.” Pressed on whether Washington expected China – which is Iran’s largest trading partner – to abide by the sanctions regime, Bessent did not give a definitive answer.

“We find that the best way to engage with countries is through quiet diplomacy. And we are level-setting with every country to tell them our expectations. We know who they are. They know who they are,” he replied, adding “no-one is above the reach of US sanctions.”

Bessent’s threats were shrugged off in Tehran. “Americans know that no one buys their bombast,” senior Iranian negotiator Mohammad Bagher Ghalibaf wrote on X after the treasury secretary's press conference.

“The United States is not in an economic position to further restrict its relations with other countries,”he explained. “Iran’s trading partners, both in the media and through messages sent to us, have made it clear that they don’t take these statements into account anywhere.”

Mohsen Rezaei, the head of Iran’s Supreme National Security Council, warned on Sunday that “not a single drop of oil will leave the Persian Gulf and the Strait of Hormuz” if the Gulf states join the US’ economic pressure campaign. If US President Donald Trump “wants to do something, we will retaliate in a seismic manner,” Rezaei added.

Last week, Trump threatened to inflict what he called “Economic D-Day” on Iran, after a 60-day window for negotiating peace with Tehran expired with no breakthrough. Trump ruled out a return to negotiations, but Pakistani Chief of Defense Forces Asim Munir arrived in Tehran on Monday in an attempt to revive the talks.