Washington: The US on Monday announced what it described as an "unprecedented" initiative to further isolate Iran economically by targeting its trading partners, as the ongoing conflict in the Middle East shows no signs of resolution. Treasury Secretary Scott Bessent revealed plans for what he termed the "economic asphyxiation" of Tehran, notably through secondary sanctions on countries engaging in trade with Iran.
According to Deutsche Welle, Bessent's much-anticipated press conference did not unveil any concrete measures, but he assured that actions would follow swiftly within the week. "Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent emphasized during the conference. He reiterated the US's commitment to holding all parties accountable.
Bessent named the initiative "Operation Economic Outcast," drawing a parallel to the "Economic D-Day" mentioned by US President Donald Trump. Although this analogy had previously been met with skepticism, Bessent sought to clarify its significance by comparing it to strategic military operations from World War II. The plan targets Iran "and its enablers" and aims to present Iran with a stark choice between "complete global isolation" or an opportunity to reintegrate into the global economy.
Bessent further explained that the US Treasury has identified all networks and facilitators assisting Iran in circumventing sanctions, with intentions to "tighten the noose" around Iran's revenue sources. He signaled a "zero leakage approach" and warned third countries against operating in ambiguous areas of this conflict. As part of the strategy, President Trump has been reaching out to world leaders to cease their interactions with Iran, with Bessent claiming early signs of success, although he did not provide specific examples.
In response, Iran's Economy Minister Ali Madanizadeh dismissed the US sanctions as likely to result in "another defeat" for Washington, revealing that Tehran has a "two year plan" to counteract the measures. Similarly, Mohsen Rezaei, head of Iran's Supreme National Security Council, warned that Iran would consider support for US measures as an "act of war" and threatened to disrupt oil shipping routes in retaliation.
The US's focus on third countries is partly due to its limited direct economic leverage over Iran, as bilateral trade is negligible. Iran's significant trading partners include China, the United Arab Emirates, Turkey, and Iraq, with the UAE recently suspending trade with Iran. Germany remains Iran's largest European trading partner, but trade volumes have declined amid the conflict. Ahead of the press conference, China's Foreign Ministry indicated it would protect its rights and criticized sanctions as ineffective in resolving conflicts.
Amidst the sanctions announcement, the situation in the Middle East remains tense. The conflict began in February with strikes by Israel and the US on Iran, leading to retaliatory actions by Tehran. While bombing has ceased, negotiations have stalled, primarily over control of the Strait of Hormuz. Efforts to revive diplomatic talks continue, with Pakistan's army chief and Oman's foreign minister engaging in discussions with Iranian counterparts.