US launches Operation Economic Outcast to isolate Iran through secondary sanctions

The United States on August 24, 2026 launched Operation Economic Outcast, a campaign of secondary sanctions intended to cut remaining economic links that sustain the Iranian government.

Treasury Secretary Scott Bessent said the operation maps every node Iran has used to move oil, procure technology and generate revenue. He described it as an economic D-Day aimed at forcing Tehran into complete isolation or a path back to normalcy under American terms.

New sectoral determinations expand secondary sanctions risk across five areas: digital assets, technology, gold, aviation and shipping. Any entity that continues to transact with Iran in these sectors faces loss of access to the US dollar system.

Bessent announced simultaneous sanctions on more than 60 entities, individuals and vessels located in the United Arab Emirates, Hong Kong, China, Singapore, Switzerland and elsewhere. The designations cover networks accused of supporting Iran’s nuclear and missile programmes, cyber operations and oil sales.

The Treasury has previously relied on primary sanctions and targeted designations. The new approach broadens the threat to third-country firms and banks that facilitate Iranian trade, including those that buy Iranian oil.

Bessent declined to name specific countries that would face immediate pressure but stated that no one stands above the reach of US sanctions. He said a major financial institution could be designated within days.

Iran has responded by vowing resistance and accusing Washington of seeking talks while applying maximum pressure. Lines outside petrol stations in Tehran have lengthened in recent weeks as domestic fuel supplies tightened.

The campaign comes after earlier military actions that the Trump administration says dismantled significant Iranian military and nuclear capabilities. Officials present the economic track as the endgame that avoids further kinetic operations.

Critics note that previous rounds of sanctions have not produced the political changes Washington sought. China remains Iran’s largest oil customer, and secondary sanctions on Chinese banks would carry risks of retaliation in other areas of the bilateral relationship.

Bessent framed the choice for other governments and companies as binary: continue business with Tehran and lose access to the dollar system, or cut ties. He said the clock has started ticking and that the United States will pursue a zero-leakage approach.

The operation expands the list of activities that can trigger secondary sanctions and accelerates the timeline for action against facilitators. Implementation will depend on enforcement capacity and on the willingness of third countries to comply.