The United States has announced a new round of sanctions targeting Iran’s financial links, with Treasury Secretary Scott Bessent warning it amounted to “the single greatest financial offensive ever”. Speaking at a press conference in Washington on Monday, Bessent said the measures, described as “Operation Economic Outcast”, were designed to cut off Iran’s ability to trade and finance activities linked to the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC). The Treasury said the US would sever all economic ties with Iran, and warned that any country seeking to partner financially with Iran would face isolation. Bessent framed the step as a choice for Tehran between “complete global isolation” or “a path back to normalcy” through rejoining the global economy. New Sanctions PackageBessent said the Treasury Department had mapped networks, facilitators and financial channels used by Iran to evade US sanctions tied to trading oil. The announcement includes determinations against five sectors: digital assets, technology, gold, aviation and shipping. The Treasury also imposed sanctions on almost 60 entities, individuals and vessels. Bessent said the action would “tighten the noose and block every potential source of revenue” for the IRGC and the wider Iranian regime. He also warned governments and organisations that assist or trade with Iran that they could not “claim they are blind to enabling this activity”. He declined to name specific countries, but said President Donald Trump would contact world leaders with requests to stop interactions with the Iranian regime. Bessent said the US would allow time for governments and businesses to understand the new sanctions, but added that changes would “move very quickly”. Oil Flows And Hormuz WarningThe latest US threat comes after shifting deadlines and reversals from the White House in efforts to end the conflict. As fighting has continued, global oil prices have risen. In response to the most recent warning, Iran said it would shut down all oil exports from the region if the war continued. The Iranian regime also warned shipping not to pass through the Strait of Hormuz without its permission, according to Reuters. About one fifth of the world’s oil and gas typically moves through the strait, a narrow waterway south of Iran. The flow has been effectively blocked since the conflict began at the end of February, contributing to higher oil prices worldwide. Impact And Previous US MovesDavid Oxley, chief climate and commodities economist at Capital Economics, said the sanctions package would likely have limited immediate effect on Iran’s energy revenues. He pointed to a renewed US naval blockade already restricting Iran’s oil exports, calling the impact of what he termed “economic D-Day” a “damp squib”. Oxley said about 90% of Iran’s oil goes to China, adding that China has not recognised US sanctions in the past and was unlikely to change course quickly. Previous US warnings during the conflict have included remarks by Trump in April, when he said “a whole civilisation will die tonight” unless Iran agreed a deal to end the war and unblock the Strait of Hormuz. The US later backed away from that position after mediator Pakistan intervened and called for further diplomacy. The economic fallout is also being felt in the US and abroad. Higher oil prices have added to concerns about the cost of living, with petrol and diesel prices higher than a year ago. In the US, gasoline prices have passed $4 a gallon, according to the report, and affordability is a major issue for voters ahead of November’s mid-term elections. On Monday, Brent crude was $92 a barrel. Last week, Bessent also said the US government would intervene in bond markets by buying back more government debt to boost demand and lower borrowing rates, but officials said long-term borrowing costs rose again the day after. Iran’s economy is already subject to tough US sanctions. In 2015, Barack Obama and several allies agreed a deal with Iran that lifted many sanctions in return for limits on Iran’s nuclear programme. Trump pulled the US out of the agreement in 2018 and reinstated sanctions, calling the deal “defective at its core”. During Joe Biden’s presidency, attempts to revive the arrangement did not succeed. In April, the Trump administration imposed further sanctions on foreign banks and firms doing business with Tehran after it became clear that military operations had not led the Iranian regime to back down. Join the discussion? 25 August 2026
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