Bessent Launches 'Economic Asphyxiation' Campaign Against Iran

U.S. Treasury Secretary Scott Bessent launched Monday what he called an “economic asphyxiation” campaign against Iran, threatening sanctions against financial institutions, companies and countries that continue to sustain Tehran’s access to global markets.

The initiative, named Operation Economic Outcast, marks an expansion of Washington’s pressure campaign nearly six months into a war with Iran that has reached a stalemate amid stalled peace talks and restrictions on traffic through the Strait of Hormuz.

“Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said.

“We are going to hold everyone accountable, and this is economic asphyxiation of this regime.”

A ‘Zero-Leakage’ Campaign

Bessent said the Treasury would pursue what he described as a “zero-leakage approach”, seeking to block revenue flows supporting Iran and the Islamic Revolutionary Guard Corps.

The Treasury Department said it had issued determinations covering five sectors it said were used to support Iran’s economy: digital assets, technology, gold, aviation and shipping.

Bessent also threatened to cut off access to the U.S. financial system for intermediaries handling Iranian funds.

“Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system,” he said.

The Treasury secretary said a significant sanctions announcement involving a financial institution was expected by the end of the week. He also called for every branch of Iran’s Bank Melli to be shut down.

Pressure Extends Beyond Tehran

Washington’s strategy targets not only Iran but also governments, banks and businesses maintaining economic links with the country.

Bessent said President Donald Trump was personally contacting foreign leaders, asking them to halt interactions with Tehran, though he declined to identify those governments.

Countries refusing to participate would, he warned, share Iran’s isolation.

“It is now time for world leaders to make the decision between America and Iran,” Bessent said.

He added that governments siding with Washington would benefit from their relationship with the U.S.

Chinese Banks Put on Notice

Asked whether Chinese banks handling Iranian transactions could face action, Bessent said the sanctions campaign would not exempt institutions because of their nationality or size.

He said entities involved in mechanisms that convert Iranian oil sales into usable funds could become targets.

“We want to make clear here today that no one is above the reach of U.S. sanctions.”

The warning broadens the potential exposure of institutions beyond Iran itself as Washington seeks to disrupt the financial infrastructure supporting Tehran’s trade.

No Fixed Deadline

Bessent had earlier described the campaign as an “economic D-Day” against Iran.

Pressed on why Washington was not immediately imposing the full range of threatened measures, he pointed to the potential consequences for international finance, asking: “Why would I want to blow up the global financial system?”

He declined to establish a deadline for the campaign but warned that Washington’s tolerance was limited.

Iran, he said, faced a choice between complete international isolation and a return to normal relations.

War Enters Sixth Month

The economic escalation comes nearly six months after the U.S. and Israel launched a large-scale bombing campaign against Iran on February 28, triggering Iranian retaliation across the region.

The conflict has since settled into a stalemate, while peace negotiations have stalled and Iran has prevented most traffic through the Strait of Hormuz.

Bessent also directed part of his message at personnel supporting the Iranian government, invoking the fall of the Berlin Wall as he argued that mounting financial pressure could eventually affect their salaries.

The broader message to governments and financial institutions was more immediate: Washington intends to make continued economic engagement with Tehran carry direct costs.