US Treasury Secretary Scott Bessent has given Iran a clear choice. Give in, or get cut off from the world.
He announced this at a press conference on Monday, August 24. Bessent said Iran has two options now.
- Stay isolated and run a bare, struggling economy.
- Come back to normal and rejoin the world economy.
He gave this new push a name: Operation Economic Outcasts.
“Today, we are launching Operation Economic Outcasts to foreclose every other option available to the Iranian regime,” Bessent said.
Bessent and President Trump have hinted at this for days. On Sunday night, Bessent said the US was “entering the endgame.” He called it an “economic D-Day.” He said it would be the biggest financial strike ever aimed at one country.
What is actually being targeted
Bessent said the US will stop ignoring countries that quietly help Iran. He called this behavior “gray spaces.”
That includes:
- Countries that let Iranian flights land.
- Countries that hold bank accounts for Iran’s regime.
Bessent said allies of the US will benefit. He said Iran’s remaining partners will “wither.”
Why now
The US and Iran are near six months of war. Neither side has won.
Bessent thinks a weaker Iranian economy could end the need for more fighting. He told CNBC last week that a naval blockade, combined with hard sanctions, gets results. He pointed to past US sanctions as proof.
Iran’s economy is already hurting
Iran’s currency is falling fast. The rial hit a new low on Sunday. One US dollar now buys over 2 million rials.
The Trump administration says Iran has runaway inflation. It also says the currency is collapsing.
The UAE steps back from Iran
Iran’s neighbors are feeling the pressure too. This week, the United Arab Emirates cut all trade and money ties with Iran. This came after Iran fired two missiles at the UAE.
A UAE official said the move protects the global financial system.
The big question: China
China buys more Iranian oil than any other country. Bessent hasn’t said if China will get hit with the same harsh sanctions as smaller nations.
The US has already sanctioned small Chinese oil refineries that buy from Iran. But it has not gone after major Chinese banks. Experts say a tougher move on China could strain plans for a meeting between Trump and Chinese leader Xi Jinping.
Iran is not backing down
Iran’s top security official gave a warning of his own. He said any country that backs the new US sanctions will be treated as an enemy at war.
Iran has also threatened to seize ships in the Strait of Hormuz if the sanctions move forward.
Bessent’s message has stayed the same all week: pick a side. “Any remaining tie to Tehran will hasten the economic ostracism of countries and entities, whether that tie be purposefully constructed or willfully ignored,” he wrote in the Financial Times.
