- By Shubham Bajpai
- Mon, 24 Aug 2026 11:56 PM (IST)
- Source:JND
- US announces 'economic D-Day' against Iran.
- Secondary sanctions threatened for countries with Iran ties.
- Companies face cutoff from dollar-based financial system.
United States has moved to escalate economic pressure on Iran amid the protracted crisis by announcing secondary sanctions on countries keeping ties with Tehran.
US Treasury Secretary Scott Bessent, at a press conference, on Monday unveiled what he described as an "economic D-Day". He claimed it to be a final warning to countries to sever economic ties with Iran, failing which secondary sanctions will be imposed.
He warned that companies with business ties with Iran will be cut off from the dollar-based system. Bessent dubbed the fresh expansion of sanctions as 'Operation Economic Outcast'.
"We are launching an economic onslaught against Iran's financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent said.
Bessent announced the campaign against all Iranian sources of revenue, including oil, to prevent countries from trading with Tehran. Bessent also announced sanctions on nearly 60 entities, individuals and vessels, and said Treasury was targeting five sectors Iran was using to prop up its economy: digital assets, gold, technology, aviation and shipping.
"Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," he said.
The latest action has raised questions over potential sanctions on large Chinese banks, which are considered to be the facilitators of the Iranian oil trade as Beijing remains the biggest buyer of Iranian crude.
For long, the US has tried to intensify efforts to clamp down on Chinese purchases but has fallen short of acting against Chinese banks, possibly to avoid economic confrontation with the Asian rival.
The war that the US and Israel started with Iran on February 28 is nearing six months. The conflict has sent energy prices higher. While the heavy military fighting has stopped, the Strait of Hormuz remains effectively closed and the negotiating table empty.
Existing US sanctions
Notably, the US has imposed sanctions on Iranian entities for a long time. While the sanctions, aimed at curtailing oil revenue, the aviation sector, etc, have been maintained for decades, Tehran has been quick in building new fronts like companies and entities to evade them.
(With Reuters Inputs)