US launches 'Operation Economic Outcast' against Iran, threatening secondary sanctions over crypto, gold, tech

The Donald Trump administration announced Monday it would ratchet up economic sanctions against Iran to their maximum level, including imposing secondary sanctions on third countries that trade certain goods with Tehran.

Treasury Secretary Scott Bessent held a press conference at the Treasury Department in Washington, declaring: "Today, we are launching Operation Economic Outcast to cut off every option available to the Iranian regime."

The Treasury Department said it would impose secondary sanctions on countries that engage in transactions with Iran involving digital assets, technology, gold, aviation and shipping. Secondary sanctions penalize third countries — through tariffs or other measures — for doing business with a designated target.

The move to sanction digital asset transactions reflects Iran's growing use of cryptocurrency to evade existing restrictions. "Iran is increasingly using cryptocurrency as a primary means of sanctions evasion, facilitating transactions linked to the Islamic Revolutionary Guard Corps and regime insiders," the Treasury said.

On the ban covering technology trade, the department said Iran "is attempting to access advanced technology and integrate it into its domestically manufactured weapons programs."

Regarding gold, the Treasury said Iran's regime has been stepping up efforts to stabilize the rial against rampant inflation as the country's formal financial sector has collapsed.

Aviation was added to the sanctions list because Iran uses aircraft "to transport combatants, move weapons and sensitive technology, and transfer gold and cash to proxy forces." Shipping was targeted because Iran "regularly transports sensitive weapons components and missile precursors" and "illicitly moves oil on behalf of the regime and military."

The US also designated more than 60 entities, individuals and vessels worldwide for helping Iran's regime acquire nuclear and missile technology, conduct cyber operations and generate oil revenues. Among those sanctioned are subsidiaries of Iran's Ministry of Defense and Armed Forces Logistics, which support the procurement of proliferation-sensitive technology and equipment for ballistic missile development and nuclear research, according to the Treasury.

Also sanctioned were malicious cyber groups operating under Iran's Ministry of Intelligence and Security. The list further includes brokers, companies and shadow vessel networks — operating in the UAE, Hong Kong, China, Singapore, Switzerland, Europe and elsewhere — that transport Iranian crude oil and funnel proceeds to the Quds Force, the elite unit of the Islamic Revolutionary Guard Corps.

Bessent warned that the Treasury "has identified every hub, every intermediary and every network Iran has used to smuggle oil and evade sanctions," adding: "Starting today, we will tighten the noose further and cut off every potential revenue stream funding the IRGC and the malign Iranian regime." He said the administration is implementing a "zero leakage" approach to further strangle the regime's finances.

Washington also called on the international community to join the effort. Bessent said President Donald Trump "is calling leaders around the world and asking them to cease their engagement with the Iranian regime." He added that all countries have been given a deadline to halt the designated activities, and that the Treasury would act unilaterally if they fail to comply — a clear signal that secondary sanctions await those who maintain ties with Tehran.

Bessent issued a pointed warning: "Any institution that facilitates money laundering on behalf of Iran will be cut off from the US dollar system."

The US had earlier vowed to unveil sweeping new sanctions after talks on ending the war with Iran and reopening the Strait of Hormuz reached an impasse. Analysts had widely expected the measures to fall most heavily on China, the largest buyer of Iranian oil.

Bessent did not name China directly when discussing sanctions on countries that trade with Iran, but said "no one is beyond the reach of US sanctions." He added that "anyone who is part of the ecosystem facilitating Iran's transactions and converting Iranian oil into a tool of money and repression will be subject to sanctions," while noting that Washington prefers to communicate its expectations through quiet diplomacy.

Asked when countries trading with Iran must stop, Bessent said: "We are not infinitely patient — we are giving everyone an opportunity to correct their bad behavior." He added: "I believe it is important to set clear standards and give a correction period, but that process will move very quickly, and they should know we are serious."

Even as it was announced, Operation Economic Outcast stirs controversy over its effectiveness. The New York Times noted that while Bessent said more sanctions would follow, "it is unclear what actual impact these sanctions will have on the Iranian economy in terms of halting its nuclear program or toppling the regime."

CNN observed that the US "threatened devastating new sanctions against nations that refuse to sever economic ties with Iran, but stopped short of actually imposing sweeping new penalties." As the network noted, the latest round notably excluded Chinese banks and financial institutions that actively trade with Iran.