Treasury Secretary Scott Bessent announced a major expansion of secondary sanctions against Iran on Monday, unveiling a campaign dubbed “Operation Economic Outcast” aimed at cutting off Tehran’s international financial connections.
Speaking at a Monday news conference, Bessent described the effort as an “economic D-Day” intended to ramp up pressure on the Iranian government amid a continuing regional impasse.
“Today, at President Trump’s direction, the United States Treasury has begun Operation Economic Outcast, an unprecedented campaign against the Islamic Republic of Iran and its enablers,” Bessent said. “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 around the globe.”
The new measures broaden the scope of secondary sanctions to penalize foreign entities and countries conducting transactions with Iran. The restrictions target multiple sectors, including shipping, aviation, technology, gold, and digital assets. Bessent specifically cautioned foreign institutions against assisting Tehran with illicit finance, stating that any party involved in money laundering for Iran “will be removed from the U.S. dollar system.”
“Let there be no ambiguity as to the position of the United States,” Bessent said. “An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power.”
While the administration previously maintained secondary sanctions focused largely on Iranian oil exports, enforcement was often partial. A comprehensive rollout will test Washington’s ability to secure allied cooperation while challenging major trading partners that maintain commercial ties with Tehran, including China, Russia, India, Pakistan, Qatar, and Turkey.
When asked whether China would face penalties, Bessent made clear that no trade partners would receive exemptions.
“No one is above this,” Bessent said. “This is economic asphyxiation of this regime … and no one should test our resolve.”
Bessent provided few specifics regarding immediate enforcement actions or rigid compliance deadlines, noting that many measures would be phased in to give institutions time to adjust.
“We are giving everyone the opportunity to remedy bad behavior,” Bessent said. “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 added that a major financial institution is expected to face sanctions soon, though he declined to name the organization. He also warned that Washington’s timeline would not remain open indefinitely.
“I’m not going to set a timeline, but we do not have infinite patience here,” Bessent said.
The sanctions push comes amid broader economic strain driven by recent military operations against Iran and subsequent energy shocks. According to the Bureau of Labor Statistics, energy costs climbed 14.7% over the past year, driven by a 10.9% single-month spike in March.
Higher fuel and crude expenses have filtered into the broader supply chain, raising prices for groceries, transportation, and home utilities. While top-line inflation has begun to cool, wage growth slowed to 3.2% over the last year, trailing price increases and reducing real purchasing power. Federal Reserve Bank consumer tracking indicates that the rising cost of everyday goods has led many households to draw down personal savings and rely more heavily on credit cards to cover basic living expenses.
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