Washington: The US on Monday announced what it said would be an “unprecedented” bid to constrict Iran’s economy by targeting its trading partners, as the war in the Middle East continues with no real resolution or progress in sight. Treasury Secretary Scott Bessent’s much-hyped press conference did not include any solid measures or announcements, but he said to expect them to follow fairly rapidly in the course of the week.
According to Deutsche Welle, Bessent laid out plans for what he called the “economic asphyxiation” of the regime in Tehran, implying this would be achieved in large part via secondary sanctions on Iran’s trading partners. “Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent told a press conference. “We are going to hold everyone accountable.”
Bessent called the program “Operation Economic Outcast” and again sought to liken it to the “Economic D-Day” mentioned last week by US President Donald Trump, a
n analogy that prompted ridicule because of how poorly it seemed to fit the circumstances. In an apparent effort to salvage the historical allusion, Bessent stated, “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, including those in third countries.”
The initiative will target Iran “and its enablers,” offering Tehran a stark choice between “complete global isolation and a subsistence economy” or a path back to normalcy. Bessent emphasized that the Treasury had mapped “every node, every network, every facilitator that Iran has used to smuggle oil and evade sanctions,” declaring an intent to “tighten the noose” on Iran’s revenue sources, particularly those funding the IRGC.
Furthermore, Bessent underscored a “zero leakage approach,” asserting that for third parties, it was “no longer acceptable to operate in the grey spaces of this conflict.” He noted that President Trump is actively reaching out to world leaders to c
ease their interactions with Iran, claiming that results are already visible, though he did not provide specifics.
Iran’s Economy Minister Ali Madanizadeh responded swiftly, predicting “another defeat” for Washington. He declared that Tehran had a “two-year plan” to counter the sanctions, emphasizing Iran’s historical resilience against external pressures. Over the weekend, Supreme National Security Council leader Mohsen Rezaei warned that Tehran would perceive any support for US measures as an “act of war,” threatening to disrupt oil shipments from the Persian Gulf.
The US’s new focus on third countries stems from its limited direct economic leverage over Iran, given existing international sanctions and minimal bilateral trade. Prior to the war, Iran’s major trading partners included China, the United Arab Emirates, Turkey, Iraq, and Russia. Notably, Germany is Iran’s largest European trading partner, although trade volumes have declined significantly amid the ongoing conflict.
Ahead of the press conferen
ce, China’s Foreign Ministry expressed its intention to protect its rights while noting that sanctions and pressure tactics do not facilitate problem-solving. The US’s current tactics reflect a broader strategy to isolate Iran economically, as articulated by President Trump’s recent “economic D-Day” announcement targeting countries continuing business with Tehran.
The Middle East war, initiated on February 28 with strikes by Israel and the US on Iran, remains unresolved. Although active bombing has ceased, negotiations have stalled over control of the Strait of Hormuz, a critical waterway for global oil and gas shipments. Diplomatic efforts continue, with Pakistan’s army chief and Oman’s foreign minister engaging in talks to mediate the conflict.