US launches Operation Economic Outcast against Iran with sanctions across five sectors

Launch of Operation Economic Outcast

The United States announced an expansion of secondary sanctions against Iran on 24 August 2026 under the designation Operation Economic Outcast. United States Treasury Secretary Scott Bessent detailed the measures during a press conference in Washington, targeting five sectors: digital assets, technology, gold, aviation, and maritime transport. Treasury officials stated that Iran relies on these sectors to sustain its domestic economy and finance the Islamic Revolutionary Guard Corps. Bessent explained that the administration mapped out networks, facilitators, and nodes used by Tehran to smuggle oil and evade international restrictions.

The Treasury Secretary framed the measures as an ongoing effort to eliminate Iranian revenue sources, warning that enforcement actions would proceed daily across multiple federal agencies.

Those who tie themselves to the Iranian regime must expect to share the isolation of a declining regime.

Scope of secondary sanctions and dollar exclusion

The expanded secondary sanctions aim to deter third-party nations and international financial institutions from conducting transactions with Iranian entities. Bessent stated that foreign institutions facilitating Iranian transactions or money laundering will be cut off from the United States dollar clearing network. During the briefing, Bessent emphasized that no foreign jurisdiction is immune to enforcement, explicitly extending the warning to Chinese commercial and banking entities.

Nobody is above American secondary sanctions.

Bessent previously outlined the strategy in an opinion article published in the Financial Times, describing 24 August 2026 as an economic D-Day intended to sever Iran's remaining lifelines nearly six months into the broader Middle East conflict.

Currency depreciation on unregulated markets

The official announcement followed remarks by United States President Donald Trump on Truth Social, where he asserted that the Iranian government was undergoing economic collapse. Preceding the Treasury conference, the Iranian rial fell to a record low of 1.992 million rials per United States dollar on unregulated exchange markets. This shift marked a 4.5% decline in the value of the rial after Trump initially announced plans for an economic campaign during the previous week.

Iranian diplomatic and parliamentary pushback

Iranian officials rejected the announcements and issued warnings to third countries against complying with Washington's financial measures. Iranian Foreign Ministry spokesperson Esmaeil Baghaei described United States economic pressure and naval blockade actions as aggressive violations of international law, stating that any nation assisting Washington will face consequences. Iranian Deputy Foreign Minister Kazem Gharibabadi challenged Bessent's claims regarding the dismantling of Iranian infrastructure.

Mr. Bessent! Your narrative does not add up: you say that Iran's military power has been dismantled, that 100% of its military sites have been destroyed and that its nuclear program has been buried. But for this Iran needs the biggest financial offensive in history and the mobilization of all institutions and powers of the United States! Is this a victory or an admission of US defeat?

Speaker of the Iranian Parliament Mohammad Ghalibaf wrote on social platform X that the United States lacks the economic standing to restrict global commerce, adding that foreign trading partners had already communicated their intent to disregard Washington's statements.