Washington: The United States has sharply increased economic pressure on Iran, warning countries and companies that continue doing business with Tehran that they could soon face serious consequences under a wider secondary sanctions campaign.
The move marks a significant escalation in Washington’s efforts to weaken Iran’s economy and restrict the money flowing to its government, military and affiliated organisations. The Trump administration has described the campaign as an economic offensive designed to cut Iran off from the financial networks that have allowed it to continue trading despite years of American sanctions.
US Treasury Secretary Scott Bessent announced the campaign on Monday under the name Operation Economic Outcast. The Treasury said the effort would target the financial connections and commercial networks that support Iran, including those involved in oil sales, shipping, technology, aviation, gold and digital assets.
The United States has already sanctioned nearly 60 individuals, companies and vessels linked to Iran. The targets include networks accused of helping Tehran move oil revenues, obtain military and missile technology, conduct cyber operations and bypass existing sanctions.
But the most important part of the new strategy goes beyond Iranian companies.
Washington is now warning foreign businesses and financial institutions that continue supporting Iran that they could lose access to the American financial system. This is the essence of secondary sanctions. Instead of targeting only companies directly connected to Iran, the United States can punish foreign organisations that continue certain dealings with Tehran.
The threat is particularly important for countries that remain major buyers of Iranian oil.
China is at the centre of the issue because it has been Iran’s largest oil customer. Iranian oil shipments to China have already fallen sharply in recent months, according to shipping data. Shipments were estimated at about 534,000 barrels a day in August, down from around 823,000 barrels a day in July.
Much of Iran’s oil trade with China is handled through complex networks involving independent refineries, traders and intermediaries. Iranian crude has also been moved through arrangements designed to make its origin harder to identify.
Washington now faces a difficult decision over how far it is prepared to go against these networks. Bessent has warned that no financial institution should assume it is beyond the reach of American sanctions. He has also indicated that a major financial institution could be targeted before the end of the week.
That possibility could make the next stage of the campaign much more serious.
China has strongly opposed unilateral American sanctions and has defended its right to maintain economic relations with Iran. Beijing has also warned that increasing economic pressure will not solve the wider conflict and could instead deepen tensions.
Iran, meanwhile, has rejected the American campaign and promised to retaliate. Iranian officials have described the new measures as economic aggression and have insisted that Tehran will continue resisting American pressure.
The latest developments come after months of conflict and growing disruption to energy supplies in the region. Washington has been trying to restrict Iran’s ability to earn money from oil exports while also putting pressure on the networks that help Tehran move those revenues internationally.
The effect on global oil markets has so far been more limited than might have been expected. Oil prices have not surged following the latest announcement, suggesting that traders believe the immediate impact of the new measures will be manageable. The market is watching closely, however, because a much tougher crackdown on Iranian exports could change the situation quickly.
The United States appears to be giving foreign governments and companies a short period to change their behaviour before imposing the most severe penalties. This gives Washington room to increase pressure without immediately creating a major shock to the international financial system.
At the same time, the strategy carries its own risks. If the United States begins targeting major Chinese banks or other important international financial institutions, the dispute could develop into a much wider confrontation between Washington and countries that refuse to cut their economic links with Iran.
For Iran, the pressure comes at a difficult moment. The government is facing growing economic challenges, reduced oil revenues and increasing isolation. The United States hopes that cutting access to international finance will make it harder for Tehran to fund its government, military activities and regional networks.
For now, the central question is how far Washington will go.
The initial sanctions are only the first stage of the new campaign. If the United States follows through on its warning and begins imposing secondary sanctions on major banks, oil buyers and shipping companies, the consequences could extend well beyond Iran.
The coming days could therefore determine whether Operation Economic Outcast remains primarily a warning campaign or becomes one of the most aggressive American efforts yet to isolate Iran economically.