US Treasury Secretary Scott Bessent announced the start of “Operation Economic Outcast” on Iran in remarks at a press conference on Monday following earlier threats of an “economic D-Day” against the regime.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” said Bessent.
U.S. Secretary of the Treasury Scott Bessent Holds Press Conference on Economic D-Day https://t.co/SilSgXpRsi
— Treasury Department (@USTreasury) August 24, 2026
Bessent described the operation as “a sustained campaign to collapse every last option for Iran,” saying that those involved in “any” economic cooperation with Tehran would expose themselves to “the full reach of American power.”
He noted the kinetic and prior economic actions of US President Donald Trump against the Islamic regime, which Bessent said signaled a different approach to Tehran than previous administrations.
“We are no longer managing the Iranian threat,” he emphasized. “We are ending it.”
He added that Iran faces a “very clear choice,” saying the regime can either accept “complete global isolation” or a path to normalcy.
Bessent described the operation’s methods as actions that will “tighten the noose” around Iran’s funding sources, leaving it “no breathing space.”
He further stressed that the “grey areas” some countries use to evade sanctions on Iran would “no longer” be acceptable.
“Countries cannot claim they are blind to enabling this activity,” he added. “The president is making phone calls to world leaders with specific requests to cease their interactions with the regime.”
He noted that countries that choose to continue cooperating with Tehran’s “withering” regime would face economic consequences, describing those who do as “foolish.”
Bessent listed five Iranian “vital lifelines” that the operation would initially target: digital assets, technology, gold, aviation, and shipping.
“Any entity that facilitates money laundering on behalf of Iran will be removed from the US Dollar system,” he emphasized. “the clock just started ticking.”
He further warned against any nation “testing” the resolve of the US government.
“It is now a time for world leaders to make a decision between prosperity and isolation, peace and terror, America and Iran,” he declared.
Bessent concluded his remarks by noting that Operation Economic Outcast would continue until Iran “stands alone.”
Trump: Iran ‘completely collapsing’
The operation’s announcement comes after claims by Trump in a Truth Social post earlier on Monday that Iran is completely collapsing.
The post came as the US Treasury is expected to broaden the scope of secondary sanctions it can impose on entities and countries that maintain business ties with Iran, as the Trump administration seeks to increase economic pressure on Tehran, a source familiar with the plans told Reuters.
— Rapid Response 47 (@RapidResponse47) August 24, 2026
The action is aimed at giving a final warning to countries to sever their business ties with Iran in an effort to force an end to the nearly six-month conflict that has bottled up the Strait of Hormuz and Gulf energy exports, said the source, who spoke on condition of anonymity due to not authorized to speak publicly about the matter.
The source said that US Treasury Secretary Scott Bessent also intended to provide a broader overview of an economic pressure campaign against Iran that he and Trump have described as an “economic D-Day,” and would make it clear to countries that they must side with the US or risk having key companies and entities cut off from the dollar-based financial system.
Bessent last week billed the action against Iran as the “toughest sanctions in history,” saying that along with the US naval blockade of Iranian ports, they would reduce the need for new “kinetic” military operations against Iran.
The US has maintained sanctions against Iran for decades, most of which have been aimed at curtailing the country’s oil revenues, aviation sector, cryptocurrency, procurement of weapons components and other military hardware, and cutting off funding for business enterprises controlled by the Islamic Revolutionary Guard Corps, a dominant force in the Iranian economy.
The sanctions bar designated entities from the dollar-based financial system, but Iran has been successful in quickly standing up new front companies, other entities and vessel registrations to evade the sanctions.
Bessent plan to include additional categories of sanctioned conduct
The source familiar with Bessent’s plans said the action is likely to reveal additional categories of Iran-related conduct that would be subject to secondary sanctions in the future, making it easier to take action against those facilitating the transactions on behalf of the Iranian government.
The source did not specify the activities that could be subject to sanctions, but said that for certain Iranian sectors, any activity, even in a third country, could be subject to secondary sanctions.
The Treasury currently approves licenses for transactions in a number of sectors in Iran, including for medicine and medical devices, cultural and arts exchanges and agricultural transactions.
A senior administration official said Bessent is expected to warn that any remaining financial lifelines, including through banks and third countries that have tolerated certain activity, must be shut down.
The official, who also spoke on condition of anonymity, said the Treasury has “mapped Iran’s oil-smuggling and sanctions-evasion network” and will present this information to countries helping Iran evade the sanctions as a warning.
