- The US Treasury secretary, Scott Bessent, calls the administration's effort to cut Iran off from the global economy Operation Economic Outcast, threatening sanctions on foreign governments, banks, and companies that do business with Tehran.
- Iran's president, Masoud Pezeshkian, has said Iran can still negotiate from a position of 'power and dignity' while also wanting an end to the war.
- Mohsen Rezaei, the new head of Iran’s supreme national security council, calls Washington's economic campaign an 'act of war'.
- Rezaei says Tehran will first try to persuade neighbouring states not to participate in the campaign, but has threatened their interests if they do, and warned that Iran could use routes designed to bypass Hormuz.
- Beijing is moving in the opposite direction, defying US sanctions targeting Chinese buyers of Iranian oil, and its top court highlighted a ruling penalising a Singaporean company for complying with US sanctions.
- In 2018, the US left the 2015 nuclear deal with Iran, and Iran instead expanded its nuclear programme; military conflict was supposed to force Tehran to accept US terms, but instead the war expanded and Hormuz became a central source of Iranian leverage.
- When asked why Washington was not immediately imposing its most sweeping secondary sanctions, Bessent responded, 'Why would I want to blow up the global financial system?'
Operation Economic Outcast is the latest strategy from the US Treasury to isolate Iran economically, as Secretary Scott Bessent aims to cut Tehran off from global markets.19
The initiative comes after military efforts have failed to compel Iran to capitulate. Bessent stated, "Why would I want to blow up the global financial system?" indicating a cautious approach to sanctions.
Iran's leadership, including Mohsen Rezaei, has condemned the operation as an “act of war,” threatening to retaliate against nations that comply with US sanctions. Rezaei emphasized that Iran would first seek to persuade neighboring states to resist US pressure.3
Despite these tensions, China continues to defy US sanctions, maintaining its economic ties with Iran. This defiance is underscored by a recent ruling from China's top court, which penalized a Singaporean company for adhering to US sanctions.
The ongoing conflict has left Iran's economy battered, exacerbated by years of sanctions and a US naval blockade. As the situation unfolds, the potential for further escalation remains high, with Iran threatening to leverage its strategic position in the Strait of Hormuz to counteract US efforts.4578
“Iran's president Masoud Pezeshkian says Tehran can still negotiate from a position of 'power and dignity' while seeking an end to the war. Meanwhile, Beijing's top court highlighted a ruling penalising a Singaporean company for complying with US sanctions, signalling resistance to Washington's pressure.”
The Guardian
