US Announces 'Unprecedented' Economic Push Against Iran

The United States on Monday unveiled what it described as an unprecedented effort to constrict Iran's economy by targeting its trading partners, as the Middle East conflict continues without resolution. Treasury Secretary Scott Bessent's press conference laid out plans for what he called the 'economic asphyxiation' of the regime in Tehran, with secondary sanctions on Iran's trading partners expected to play a central role.

Bessent framed the program, dubbed "Operation Economic Outcast," as a direct follow-up to President Donald Trump's earlier reference to an "Economic D-Day." In his remarks, Bessent drew a World War II parallel, suggesting that the campaign would drive enemies from positions, "including those in third counties." The analogy, however, was met with criticism for being historically inaccurate and out of step with the current crisis.

"Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," Bessent said, adding that the sanctions would be the equivalent of the "single greatest financial offensive ever marshaled against an adversary." He did not, however, list concrete measures during the press conference, but said to expect further details "fairly rapidly" in the coming week.

‘Economic D-Day’ and the Endgame

The announcement comes as President Trump has escalated his rhetoric against Iran, declaring on social media hours before the press conference that Iran was "completely collapsing." Last week, Trump announced an "economic D-Day" , threatening stricter sanctions against Iran and any country that continues to do business with it. In a related Financial Times opinion piece, Bessent wrote that "at dawn begins an economic D-Day."

Bessent said that the sanctions regime was the most extensive financial campaign against an adversary, and that it was part of the administration's effort to "dismantle Iran's military capabilities, destroy nearly 100% of its military factories, and bury its nuclear program." He further asserted that "We are now entering the endgame," citing the recent successes of US-led campaigns.

Iranian Responses: Threats and Defiance

Iran responded strongly to the announcement. Iranian Foreign Minister Abbas Araqchi described the US move as a sign of desperation, arguing that the pressure campaign would not succeed in forcing Tehran into submission. Major General Ali Abdollahi, chief of staff of Iran's armed forces, promised that Iran's military will respond "with crushing, punishing, and devastating responses" to the new threats.

Foreign Ministry spokesperson Esmaeil Baghaei criticized the secondary sanctions, calling them an assertion of "extraterritorial sovereignty over every independent member state of the United Nations" and questioning their legality under international law. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, warned that any country participating in economic restrictions against Iran is considered an enemy.

Brigadier General Mohammad Akraminia, an Iranian Army spokesperson, stated that Iran's military doctrine is shifting from defence to offence, potentially allowing pre-emptive strikes against perceived threats. Iran also threatened to close oil exports from the Gulf in retaliation for the continued economic war.

Troubled Waters and Regional Fallout

The announcement comes amid heightened tensions in the Strait of Hormuz, a key oil shipping route. Only four commodity ships passed through the strait on Thursday, none of them large crude carriers or LNG tankers, a steep drop from the pre-war daily average of over 130 vessel. Iran has retained enough missile and drone capability to attack neighboring Gulf states and threaten tankers, bringing shipping in the vital waterway to near standstill.

President Trump on Monday said he would soon declare the Strait of Hormuz to be "US territory," a move that could escalate the crisis. In the Red Sea, a projectile struck a tanker west of the Saudi port of Yanbu, causing a fire on its main deck, although details remain unclear.

Regional and International Reactions

Pakistan's army chief Asim Munir visited Tehran on a mediating mission as the US prepared to roll out sanctions targeting Iran's trading partners. The United Arab Emirates announced it was between the two states, suspending all trade with Iran, though the impact of this measure remainspending. China, which purchases more than 80% of Iran's shipped oil according to 2025 data from analytics firm Kpler, has not yet responded formally.

The US Treasury announced new sanctions on 60 individuals, entities, and vessels. Notably, the list did not include any of the Chinese financial institutions that have been suspected of facilitating Iran's oil trade, which could signal a gap in the enforcement efforts.

The recent attacks on Iran began on February 28, with US and Israeli strikes killing Supreme Leader Ayatollah Ali Hashemi and several thousand people, primarily in Iran and Lebanon. The US and Iran have not engaged in direct military strikes for weeks, and meaningful negotiations to de-escalate the conflict have not materialized. The exact state of Iran's nuclear program, which both the US and Israel aim to dismantle, remains unknown.

Bessent, in an interview with CNBC, reiterated that the US would impose the "toughest sanctions in history," describing that "it is going to work in Iran and we are going to collapse this regime." He also sought to reassure the global financial market, saying the US is giving "everyone the opportunity to remedy bad behavior" and questioning why he would want to "blow up the global financial system."