U.S. Treasury Secretary Scott Bessent on Monday, announced "Operation Economic Outcast," an "unprecedented" sanctions campaign described as an "economic D-Day" designed to sever every global financial lifeline sustaining the Iranian regime.
The initiative targets five critical sectors—digital assets, technology, gold, aviation, and shipping—and immediately sanctioned over 60 entities, individuals, and vessels involved in Iran's nuclear procurement, cyber operations, and oil smuggling.
Bessent said the operation presents a choice for the world: nations aligning with the U.S. will reap partnership rewards, while those maintaining economic ties with Tehran will face secondary sanctions** and isolation.
The Treasury Department asserted it has mapped every node and facilitator in Iran's evasion network, demanding that countries shut down identified activities within a defined but undisclosed timeline. Specific directives included the requirement that every branch of Bank Melli must be shuttered, with Bessent previewing a major sanction against a non-compliant financial institution by the end of the week.
While Bessent warned that "no one is above the reach of U.S. sanctions," including potential removal from the U.S. dollar system, the announcement stopped short of naming specific major Chinese banks, and offering a brief window for "quiet diplomacy" before further enforcement, ahead of a planned summit between President Donald Trump and President Xi Jinping.
In response, Iran stated it is "fully prepared" to counter with a two-year plan to manage the sanctions, relying on continued trade with China and Russia. Analysts note that the campaign's success hinges on whether China, which purchases roughly 90% of Iran's oil, complies with the U.S. demands.
China has vowed to take "all necessary measures" to safeguard its rights and interests if the United States expands secondary sanctions on Chinese entities trading with Iran. Foreign Ministry spokesperson Lin Jian said on Tuesday, that Beijing firmly opposes these "illegal unilateral sanctions" and warned that economic warfare would only intensify global tensions.
In response to previous US pressure, Beijing has already instructed domestic companies to ignore American sanctions and activated legal frameworks designed to neutralize foreign restrictions on Chinese firms.
Monday's announcement occurs amid a six-month war between the U.S./Israel and Iran, which has disrupted global energy markets and blocked the Strait of Hormuz.