Secretary of the Treasury Scott Bessent says they are already seeing results in Operation Economic Outcast targeting Iran.
Yesterday, Bessent announced the US would pursue new sanctions and actions to undermine economic activity supporting Iran. While many sanctions are already in place, Iran has been fairly adept at finding ways to bypass US actions by working with other countries and platforms, like crypto firms, to evade the sanctions. Most of Iran’s revenue comes from oil sales to countries like China.
Secretary Bessent said that President Donald Trump had been calling allies and partners around the world to request they cease any activity with the Iranian regime. The Secretary claimed that the concerted effort had already had an impact, as “comments from Iranian leadership clearly acknowledge the effect of this campaign.”
The Treasury is taking a “zero leakage approach,” and “every Bank Melli branch must be shuttered” while declaring that “America is no longer managing the Iranian threat. We are ending it.”
The Treasury issued an implicit warning that nations that skirt economic sanctions should heed the US message. At the same time, those countries that support the activities will be rewarded.
While some countries supported the US actions, others reportedly did not intend to heed the demand.
Iranian Speaker of Parliament Mohammad Bagher Ghalibaf announced on X:
“Americans know that no one buys their bombast; the United States is not in an economic position to further restrict its relations with other countries. Iran’s trading partners, both in the media and through messages sent to us, have made it clear that they don’t take these statements into account anywhere.”
It was not immediately clear what type of action the Administration was willing to take against China, Iran’s key trading partner, which is purchasing much of the oil. China issued a statement claiming the sanctions would escalate tensions in the region. The US and China are expected to hold a summit next month as trade and geopolitical conflicts rise.
Drastic inflation has been a serious issue in Iran; currently, USD $1 is worth approximately 2,005,000 Iranian Rials. The official government rate is around 42,000 Iranian Rials.
Some reports indicate that the Iranian Revolutionary Guard Corps are the de facto leaders of the country, pushing aside religious leadership.