U.S. Unveils ‘Economic D-Day’ Against Iran

U.S. Unveils Sweeping Sanctions Campaign Against Iran and Its Allies

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U.S. Unveils ‘Economic D-Day’ Against Iran

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U.S. Unveils ‘Economic D-Day’ Against Iran

The White House vows to sanction any country that continues to do business with Tehran.

!An illustration of Alexandra Sharp, World Brief newsletter writer

*An illustration of Alexandra Sharp, World Brief newsletter writer*

*Alexandra Sharp*

By **Alexandra Sharp**, the World Brief writer at *Foreign Policy*.

!U.S. Treasury Secretary Scott Bessent announces a new set of sanctions against Iran. He stands at a podium while a U.S. flag waves in the background.

*U.S. Treasury Secretary Scott Bessent announces a new set of sanctions against Iran. He stands at a podium while a U.S. flag waves in the background.*

U.S. Treasury Secretary Scott Bessent announces a new set of sanctions against Iran at the Treasury Department in Washington on Aug. 24. Chip Somodevilla/Getty Images

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August 24, 2026, 5:21 PM

Iran War

Analysis and news.

Welcome back to World Brief, where we’re looking at a **U.S.** sanctions campaign against **Iran** and its allies, **Kazakhstan**’s landslide election results, and the cancellation of another **U.S.-South Korea** military exercise.

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**No One Is Safe**

U.S. Treasury Secretary Scott Bessent on Monday unveiled Operation Economic Outcast: a campaign to cut off Iran from the global economy by threatening so-called secondary sanctions against any country or entity that continues to do business with Tehran. That reportedly includes sanctions on an unnamed major financial institution, to be announced by the end of this week.

Welcome back to World Brief, where we’re looking at a **U.S.** sanctions campaign against **Iran** and its allies, **Kazakhstan**’s landslide election results, and the cancellation of another **U.S.-South Korea** military exercise.

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**No One Is Safe**

U.S. Treasury Secretary Scott Bessent on Monday unveiled Operation Economic Outcast: a campaign to cut off Iran from the global economy by threatening so-called secondary sanctions against any country or entity that continues to do business with Tehran. That reportedly includes sanctions on an unnamed major financial institution, to be announced by the end of this week.

“Our objective is to sever every economic pipeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said in a press conference. “Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to the Iranian regime should expect to share in the isolation of a withering regime.”

Operation Economic Outcast includes new sanctions on nearly 60 individuals, entities, and vessels that allegedly enable Iran’s nuclear and missile procurement, cyberoperations, and oil revenue programs. It also expands secondary sanctions on anyone who operates in or provides services to five critical Iranian sectors: aviation, digital assets, gold, shipping, and technology.

“Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system,” Bessent added, without specifying what removal might entail. He also stressed that U.S. President Donald Trump has already begun making specific requests to world leaders on how they should cease their interactions with Tehran.

Trump initially warned of an “Economic D-Day” last week, during which he claimed (without providing evidence) that Iran’s navy and air force are entirely destroyed, its military facilities are decimated, and its currency is worthless. The Iranian rial hit an all-time low on Monday, dropping to 2.02 million to the U.S. dollar. Yet Iran’s military continues to launch attacks on commercial ships attempting to traverse the Strait of Hormuz.

Tehran’s leadership dismissed Bessent’s threats as “bombast” on Monday and expressed confidence in the country’s partners. “The United States is not in an economic position to further restrict its relations with other countries,” chief Iranian negotiator Mohammad Bagher Ghalibaf wrote on X, less than an hour before Bessent’s press conference.

Bessent refused to specify which countries will be subjected to new U.S. sanctions. However, experts suspect that Beijing, which has refused to reduce its business ties with Tehran, may become a target. Last year, China purchased more than 80 percent of Iran’s shipped oil, and it continues to act as Iran’s top trading partner. When asked whether Chinese banks might be hit, Bessent warned that “no one is above the reach of U.S. sanctions.”

Ahead of Bessent’s press conference, the Chinese Foreign Ministry vowed to do what is necessary to protect its interests, and it urged all parties to act with restraint. Previously, Beijing has argued that economic pressure on Iran will do little to end the six-month war. How this might impact Trump’s upcoming summit with Chinese President Xi Jinping, slated to be held in Washington next month, is still to be seen.

Bessent gave no deadline for compliance, but he warned that “we do not have infinite patience here.” U.S. officials told *Axios* that the secondary sanctions campaign will likely be the White House’s primary tactic in the war until at least the U.S. midterm elections in November, after which another military campaign could be back on the table.

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**Today’s Most Read**

* **The U.S. Is Learning the Wrong Lessons in Iran***by Bret Devereaux*
* **A Tale of Two Socialists***by Omar G. Encarnación*
* **Trump’s Twin Blunders***by Howard W. French*

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**The World This Week**

**Tuesday, Aug. 25:** African health ministers begin a four-day meeting in Ethiopia for the World Health Organization’s regional summit.

European Council President António Costa begins a tour of European Union capitals.

**Wednesday, Aug. 26:** French Prime Minister Sébastien Lecornu begins a two-day visit to the Indian Ocean archipelago of Mayotte.

The annual Super Garuda Shield military exercise kicks off in Indonesia. Other participating countries are Australia, Canada, France, Japan, New Zealand, Singapore, South Korea, the United Kingdom, and the United States.

**Friday, Aug. 28:** Germany hosts the Baltic Sea Security Summit.

**Saturday, Aug. 29:** Iceland holds a referendum on whether to restart talks to join the European Union.

**Sunday, Aug. 30:** Guinea-Bissau holds a constitutional referendum.

Palau begins hosting the six-day Pacific Islands Forum.

**Monday, Aug. 31:** Three Canadian constituencies hold by-elections.

Slovenia hosts the two-day Bled Strategic Forum.

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**What We’re Following**

**Landslide win.** Kazakh officials announced on Monday that Adil