WASHINGTON — The Trump administration launched “Operation Economic Outcast” against Iran on Monday, with Treasury Secretary Scott Bessent warning world leaders they have a stark choice: do business with America, or do business with Tehran.
The sweeping financial offensive aims to “tighten the noose” around the Iranian regime by choking off its revenue streams — and pressuring secondary countries to cut their oil, energy and financial ties with Tehran.
“The clock just started ticking,” Bessent declared at a Monday news conference at Treasury headquarters in Washington — while declining to give a precise timeline before secondary sanctions would take effect.
TRUMP BURNING UP THE PHONE LINES
Bessent revealed that President Trump has been working the phones with world leaders, making specific demands for them to sever ties with the regime — and stressing that America “does not have infinite patience.”
“The president is making phone calls to world leaders with specific requests to cease their interactions with the regime. We are already seeing results,” Bessent said, without naming specific countries.
The Treasury chief issued a blunt ultimatum to governments worldwide: make a decision between America and Iran.
CHINA IN THE CROSSHAIRS
The warning comes as Trump prepares to meet Chinese President Xi Jinping next month. Beijing purchases roughly 90% of Iran's oil — making it the regime's economic lifeline.
Asked whether China would be subject to sanctions, Bessent left no ambiguity: “We want to make clear here today that no one is above the reach of US sanctions.”
UAE LEADS THE WAY
The United Arab Emirates — which Trump personally called hours before the announcement — already moved last week to halt all trade and financial transactions with Iran.
Bessent told reporters those actions were “likely causal,” adding: “I would expect that we would see a broad array of countries taking similar action as we continue our engagement.”
“The UAE has been a very good partner,” the secretary said. “You will see a wave of sanctions when you leave this meeting today and you should expect that cadence to continue.”
And there's more coming: Bessent warned that a major financial institution would be sanctioned by the end of the week.
THE NEW SANCTIONS TOOLKIT
The new sanctions authorities will allow Bessent — in consultation with the State Department — to target countries or entities dealing with Tehran through:
- Digital assets and cryptocurrencies
- Technology transfers
- Gold
- Commercial aviation
- Shipping
Treasury officials noted that Iran has been using cryptocurrencies to evade sanctions, stabilizing its rial with gold to hedge against inflation, and using commercial planes and ships to transport weapons, fighters, cash and bullion.
The authorities took effect Monday pursuant to an executive order Trump signed in January 2020.
'SHUTTER BANK MELLI'
As the six-month-old war with Iran has dragged on, the Trump administration has teased an “Economic D-Day” approach.
Bessent warned that countries have been told to shutter branches of Bank Melli — Iran's largest government-owned commercial bank — within their borders.
That includes the bank's branches in the UK, France, Germany and Russia, among others.
Bessent said the operation will “foreclose every other option available,” calling it a “zero leakage approach” that will ensure the regime has “no minimal breathing space” to rebuild.
IRAN'S STARK CHOICE
“Iran now faces a very clear choice, with only two paths before them: complete global isolation and a subsistence economy, or a path back to normalcy with an opportunity to rejoin the global economy,” Bessent said.
Secretary of War Pete Hegseth drove the message home later Monday: “The only choice they have is to come to the table and actually talk about their nuclear program, which is what the president has demanded.”
60+ ENTITIES SANCTIONED
The Treasury's Office of Foreign Assets Control (OFAC) on Monday sanctioned more than 60 entities that enable Iran to obtain illicit nuclear and missile technology, conduct malicious cyberattacks and boost the regime's oil revenue through shadow fleets.
Some of the sanctioned entities — located in China and Iran — helped move “proliferation-sensitive equipment” and “highly sensitive dual-use technology” to the Tehran-based Malek Ashtar University of Technology, which houses facilities that have helped develop Iran's nuclear and ballistic missile programs.
CYBER ESPIONAGE CRACKDOWN
Other sanctioned entities have been involved in cyber espionage — including the leader of a group that hacked HBO's computer system in the late 2010s and threatened to release unaired scripts of hit shows Game of Thrones and Curb Your Enthusiasm.
Members of the shadow fleet network had been operating in the UAE, Hong Kong, China, Singapore, Switzerland and other European nations to help move Iranian oil.
Syrian national Mohammad Ahmed Suhil Fattouh had been a broker for shadow fleet vessels in the UAE on behalf of sanctioned groups like the IRGC-QF and the National Iranian Oil Company.
Ukrainian national Ivan Obukhov processed more than $100 million in cryptocurrency payments while serving as a UAE-based broker for shadow fleet vessels transporting oil on behalf of Iran.
THE BOTTOM LINE
“Operation Economic Outcast” is now live. A wave of sanctions is rolling out. A major financial institution is in the crosshairs. And the Trump administration is putting every nation on notice: keep doing business with Tehran, and you're in the crosshairs too.
The clock is ticking. And President Trump isn't waiting around for it to run out.
