US launches 'Operation Economic Outcast' against Iran
US launches 'Operation Economic Outcast' against Iran
Francesca Chambers and Joey Garrison, USA TODAYMon, August 24, 2026 at 5:35 PM UTC
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WASHINGTON — Treasury Secretary Secretary Scott Bessent says the United States is launching an "economic onslaught" against Iran, with a goal of severing every economic lifeline the country has so that Tehran is forced to choose between global isolation and an agreement with the Trump administration.
Bessent said starting Aug. 24, the Treasury and other federal agencies will "tighten the noose and block every potential source of revenue that funds" the regime and Iran's military, beginning with additional sanctions on Tehran.
"We are enforcing a zero-leakage approach," Bessent said. "There will be no minimal breathing space for the regime to rebuild its capacity to inflict terror against America and the world."
Countries that are financially-connected to Iran have been contacted by the administration, he said, but will immediately face secondary sanctions, an action the Treasury chief acknowledged could throw the global financial system into turmoil.
The remarks followed more than a week of warnings from Bessent and President Donald Trump that hefty sanctions were on the way for nations that do business with Iran, as the U.S. shifts its focus from a military bombardment to economic strangulation six months into the conflict. Trump has referred to it as a "economic D-Day" and pledged to punish any nation that allows Iran to use its financial institutions.
Oil purchases, cash transfers, swap lines and ship registries were among the list of actions Trump listed as triggers.
At a news conference at the Treasury building, Bessent announced "Operation Economic Outcast," calling it "an unprecedented campaign against the Islamic Republic of Iran and its neighbors" and likening it to U.S. efforts to end World War II.
"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," Bessent said, "Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe."
Nations that have any economic interaction with Iran should expect to share the county's isolation, Bessent said. Treasury, State and Pentagon teams are meeting with individual nations to provide them with specific timelines for action, he added.
Trump is also making phone calls to world leaders that interact with the Iranian regime, Bessent said. He declined to say which ones.
"We are giving everyone the opportunity to remedy bad behavior. Why would I want to blow up the global financial system?" Bessent told a reporter who pointed out that the U.S. did not declare its intentions before its 1944 invasion.
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The United States is attempting to set expectations and provide a "cure period" — Treasury does not take the imposition of secondary sanctions lightly, Bessent said.
"But they should know that that will move very quickly, and we are serious," he added, calling the actions a "warning shot" at affected nations.
More: Trump threatens 'Economic D-Day' for countries that help Iran
US targets 'Iran's enablers'
Bessent said the United States is also sanctioning 60 entities, individuals and vessels around the world that he said enable the Iranian regime to procure illicit nuclear and missile technology, conduct cyber operations and generate oil revenue.
"This is a sustained campaign to collapse every last option for Iran," Bessent said. "Let there be no ambiguity as to the position of the United States: An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power."
Bessent directed much of his comments at "Iran’s enablers" – countries he accused of helping finance Tehran’s military campaign through the purchase and transportation of petroleum. The U.S. is also warning nations that facilitate trade with and welcome flights from Iran.
While not specified, they include U.S. ally Turkey and China, whose president, Xi Jinping, is scheduled to visit the White House next month.
Last week, the United Arab Emirates said it was suspending trade with Iran, depriving Tehran of one of its largest trading partners. The nation cited a ballistic missile attack. Hours later, Trump publicly warned of consequences for nations that have financial connections to Iran.
At his Aug. 24 news conference, Bessent indicated the announcements were connected.
"I would think that the actions that they took last week were not coincidental but likely causal," Bessent told reporters.
This story has been to add new information.
This article originally appeared on USA TODAY: US launches 'Operation Economic Outcast' against Iran
Source: “AOL Breaking”
