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0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. The Trump administration on Monday launched what it described as an unprecedented economic offensive against Iran , unveiling a sweeping package of sanctions , enforcement measures and diplomatic pressure aimed at cutting off the Islamic Republic's remaining financial lifelines.
Treasury officials said the initiative, dubbed "Operation Economic Outcast," would target countries, companies and individuals that continue doing business with Tehran while expanding sanctions authorities across key sectors of Iran's economy.
"Let there be no ambiguity as to the position of the United States: economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power," Treasury Secretary Scott Bessent said at Monday's press conference.
The announcement marks a major escalation in President Donald Trump 's pressure campaign against Iran and comes as the administration seeks to deepen the economic isolation of a country already grappling with inflation, a weakened currency and growing trade restrictions. Bessent said the objective is to "sever every economic lifeline" sustaining the Iranian government and the Islamic Revolutionary Guard Corps.
Iran swiftly condemned the move. Foreign Ministry spokesperson Esmail Baghaei warned Monday that Tehran would respond forcefully to any expansion of U.S. sanctions, while the newly appointed head of Iran's top security body said support for the new measures would be regarded as an "act of war."
The latest confrontation follows a series of setbacks for Tehran, including the United Arab Emirates' decision last week to suspend all trade with Iran. Yet Iran continues to maintain leverage through the Strait of Hormuz, where attacks and threats against commercial shipping have significantly disrupted one of the world's most important energy transit routes.
At the center of Monday's announcement is a significant expansion of sanctions authorities covering five sectors that Treasury says have become critical to Iran's economic survival: digital assets, technology, gold , aviation and shipping. The administration said the move will make it easier to sanction foreign individuals and businesses operating in or supporting those areas of the Iranian economy.
Treasury argues that Iran has increasingly turned to cryptocurrency, gold markets and international shipping networks to evade existing restrictions while acquiring technology and supporting military activities.
Bessent's announcement came as Iran's currency sank to a fresh record low. The rial traded at roughly 2.02 million to the U.S. dollar on the open market Monday, compared with the central bank's official rate of about 1.5 million rial per dollar.
The currency had been under pressure even before U.S. and Israeli strikes on Iran on February 28, amid years of high inflation and weak economic growth. Nearly six months of conflict have deepened the crisis, with the rial repeatedly setting new lows.
The economic fallout has increasingly strained ordinary Iranians. Prices for staple goods have surged, with rice costing about 60 percent more than before the war and beef prices rising by more than 150 percent. The International Monetary Fund has projected that Iran's economy will shrink by more than 5 percent this year.
The Office of Foreign Assets Control announced sanctions on nearly 60 entities, individuals and vessels connected to Iranian oil networks, cyber operations, missile-development efforts and procurement schemes. Treasury's designations include companies, vessels and individuals located in or operating through jurisdictions such as Hong Kong, the United Arab Emirates, Singapore and China, among others.
The administration said the designations are intended to disrupt the networks Iran uses to generate revenue, acquire sensitive technology and circumvent international sanctions.
A major portion of the package focuses on Iran's petroleum industry and maritime transport networks.
Treasury sanctioned brokers, shipping companies and vessels accused of helping move Iranian crude oil and petroleum products through so-called shadow fleet operations. Officials identified several tankers they say transported millions of barrels of Iranian oil despite existing restrictions.
The administration also issued new guidance warning businesses about sanctions risks associated with shipping activity in the Strait of Hormuz.
PDF EMBARGOED-Economic-D-Day-release-2927.pdf . PDF Download Cyber Networks and Weapons Procurement Targets The sanctions package additionally targets Iranian cyber actors accused of compromising U.S. government agencies, critical infrastructure operators, healthcare systems, defense contractors and financial institutions. Treasury said several individuals linked to Iran's Ministry of Intelligence and Security were designated for cyber-enabled operations targeting American interests.
Separately, officials unveiled sanctions against a procurement network spanning East Asia and the Middle East that allegedly helped Iranian entities obtain equipment for missile development and nuclear research through front companies and covert financial channels.
Perhaps the most far-reaching aspect of the initiative is its focus on third countries.
Treasury said U.S. officials from the Treasury, State and War departments will engage governments around the world and set timelines for ending identified Iran-related activities. Countries, financial institutions and businesses that fail to comply could face expanded secondary sanctions and potential exclusion from the U.S. financial system.
The measures could have particular significance for China, which has served as Iran's largest oil customer in recent years. Kpler estimates that China bought more than 80 percent of Iran's shipped oil i...
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