Washington: The US announced on Monday its intention to launch an "unprecedented" campaign to further isolate Iran economically by targeting its trading partners. This move comes amid an ongoing conflict in the Middle East that shows little sign of resolution. Treasury Secretary Scott Bessent, at a much-anticipated press conference, did not outline specific measures but indicated that detailed plans would be unveiled later in the week.
According to Deutsche Welle, Bessent described the initiative as "Operation Economic Outcast," a plan aimed at the "economic asphyxiation" of Tehran's regime through secondary sanctions on Iran's trading partners. He emphasized the goal of severing every economic lifeline of Iran, holding accountable all entities involved in trade with the regime. Bessent reiterated the US's intent to isolate Iran globally, presenting the nation with a choice between complete isolation and rejoining the global economy.
Bessent's program, compared to an "Economic D-Day" by President Donald Trump, is designed to target Iran and its enablers. The Treasury has mapped networks used by Iran to smuggle oil and evade sanctions, intending to tighten restrictions on revenue sources funding the Islamic Revolutionary Guard Corps (IRGC) and the Iranian regime.
The strategy involves a "zero leakage approach" to third parties, with clear timelines and steps for compliance or facing consequences. Bessent noted that the President has already reached out to world leaders urging them to cease interactions with Iran, promising rewards for those aligning with the US.
In response, Iran's Economy Minister Ali Madanizadeh dismissed the US sanctions as doomed to fail, revealing Tehran's two-year plan to counter the sanctions. Iran's Supreme National Security Council leader Mohsen Rezaei warned of severe retaliation, threatening to disrupt oil shipments from the Persian Gulf if the economic war persists.
The US's focus on third countries stems from its minimal direct trade with Iran due to longstanding international sanctions. Iran's major trading partners include China, the UAE, Turkey, Iraq, and Russia, with Germany being its largest European partner. China has expressed its intent to protect its rights, criticizing sanctions as ineffective in resolving issues.
Bessent, in a prior post on X, branded the sanctions as the most significant financial offensive against an adversary, asserting the US's dismantling of Iran's military and nuclear capabilities. The conflict's origins trace back to February 28, with ongoing tensions over control of the Strait of Hormuz, crucial for global oil shipments. Diplomatic efforts continue, with Pakistan and Oman engaging in talks to help resolve the conflict.