The Trump administration on Monday announced plans to isolate Iran’s economy by threatening to impose secondary sanctions on “enablers” who keep the Islamic Republic alive.
Treasury Department Scott Bessent announced the new sanctions plan, dubbed “Operation Economic Purge,” saying, “We are launching an economic attack on Iran’s financial connections around the world.”
Bessent said at the Treasury Department that President Donald Trump has called world leaders and made “specific requests to cease interactions” with Iran.
Promised sanctions have not yet been implemented. Bessent said the U.S. would instead begin by sending countries a schedule to “cease identified activities.”
“Any organization that facilitates money laundering on behalf of Iran will be removed from the US dollar system,” he said. “The clock is just starting to tick.”
The plan, touted by President Trump as Iran’s “economic D-day,” immediately raised questions about whether the United States would also target China, Iran’s largest trading partner.
The United States and China have maintained a fragile trade truce for several months following the escalation of their trade war last year. President Trump and President Xi Jinping held a lavish summit in Beijing in May, and Mr. Xi is scheduled to meet with President Trump in Washington at the end of September.
Bessent suggested at Monday’s event that China would not be exempt.
“What I want to make clear here today is that no one is beyond the scope of U.S. sanctions,” Bessent said when asked whether the administration would target Chinese banks or avoid targeting them in order to maintain ties with China.
“If they are part of an ecosystem that facilitates trade and turns Iranian oil into money and oppression, then they will be targeted,” Bessent said.
The plan to attack Iran’s economy comes as the United States’ war against Tehran approaches six months with no sign of military or diplomatic victory.
A weak ceasefire agreement reached in June had already been largely abandoned before a 60-day deadline expired last week. The Strait of Hormuz, a key route for global oil trade, continues to give Iran leverage and remains far less active than it was before the war began. The United States has reported a decline in attacks against Iran in recent weeks, amid reports and speculation that some weapons stockpiles are being depleted.
Bessent said on Monday that the US’ new goal is to “cut off every economic lifeline that supports this tyranny until Tehran is isolated.”
He said the regime’s promoters include those who are authorized to buy and transport oil, facilitate financial transactions, accept flights and conduct maritime transport.
Besent said the United States is expanding sanctions to target participants in Iran’s digital assets, technology, gold, aviation and shipping sectors.
