US launches Operation Economic Outcast against Iran and sanctions over 60 entities

Operation Economic Outcast launched

US Treasury Secretary Scott Bessent announced the launch of Operation Economic Outcast on Monday, 24 August 2026, outlining a broad campaign to cut Iran off from global markets. The initiative focuses on severing financial lifelines across crude oil sales, maritime shipping, cryptocurrencies, gold, and commercial aviation. Bessent compared the economic campaign to the Allied Normandy landings of World War II, stating that Washington seeks to leave Tehran isolated from international commerce. US officials stated they hope economic pressure will prevent further military escalation.

We are launching an economic assault against every single financial connection of Iran on this planet. Our goal is to sever every economic lifeline that sustains this regime, until Iran is completely alone.

Secondary sanctions and diplomatic pressure

The US Department of the Treasury confirmed that it has mapped every intermediary, node, and route utilized by Iran to export petroleum and evade trade restrictions. President Donald Trump held direct discussions with foreign leaders, urging them to sever economic contact with Tehran. Foreign companies, banks, and governments maintaining commercial ties received specific wind-down schedules to end designated transactions. Bessent noted that Washington delayed immediate penalties to give institutions an opportunity to adjust, stating that instant disruption could shake the global financial system.

Foreign institutions facilitating money laundering or illicit trade face removal from the US dollar clearing network, and Washington called for the closing of all foreign branches of Bank Melli Iran. Bessent also addressed potential secondary sanctions on Chinese financial institutions, noting that no foreign entity remains outside the scope of US authority. While the US previously penalized smaller independent Chinese refineries importing Iranian crude, it had avoided targeting China's largest banks. The warning precedes a scheduled visit by Chinese President Xi Jinping to Washington.

Sanctions on global network and Iranian response

The Treasury Department issued sanctions against over 60 individuals, companies, and vessels across the United Arab Emirates, China, Singapore, and Switzerland. US authorities stated that the designated network helped Tehran acquire missile and nuclear technology, generate oil revenue, and conduct cyber operations. Several Chinese nationals were named in the sanctions package, prompting objections from Beijing regarding unilateral US measures. Bessent announced that an important financial institution will face sanctions next week.

In Tehran, government officials rejected the US measures and stated that countermeasures are in place. Iranian Economy Minister Madanizadeh stated in a television broadcast that the government has established a two-year plan to absorb the impact of American restrictions. Iranian chief negotiator Mohammad Bagher Ghalibaf said Washington lacks the standing to restrict trade between independent nations.

Americans know that nobody believes their boastful announcements. From an economic standpoint, the United States is not in a position to further restrict relations with other countries.

The sanctions coincide with a decline in the Iranian currency. The rial crossed the threshold of 2 million per US dollar on Saturday, 22 August, before trading at 2,028,000 rials per dollar on Monday. International Monetary Fund estimates indicate that Iran's gross domestic product will contract by more than 5% during the year.