The United States' Economic Isolation Operation Against Iran

Operation Economic Outcast (Ekonomik Dışlama Operasyonu), U.S. Secretary of the Treasury Scott Bessent announced on 24 August 2026 under the orders of U.S. President Donald Trump during the U.S.-Iran war, as a comprehensive economic sanctions campaign aimed at fully isolating the Islamic Republic of Iran from the global financial system.^【1】 Bessent described the operation as a campaign that expands secondary sanctions primarily in the areas of digital assets, technology, gold, aviation, and transportation, and targets third countries that maintain commercial or financial relations with Iran.^【2】 The operation was implemented simultaneously through the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposing sanctions on approximately 60 entities, individuals, and vessels, and through the U.S. Department of State imposing a separate sanctions package targeting Iran’s military supply activities and petroleum and petrochemical trade.^【3】 Bessent characterized the operation as an “economic D-Day,” drawing a parallel to the Normandy landings during World War II.^【4】

The operation was announced during a press conference held by Scott Bessent at the Treasury Department on 24 August 2026.^【5】 In his remarks, Bessent stated: “Today, under the direction of President Trump, the United States Department of the Treasury has launched Operation Economic Outcast, an unprecedented campaign against the Islamic Republic of Iran and its supporters (…) Today, with the same resolve, we are launching an economic assault against Iran’s global financial connections. Our goal is to sever every economic lifeline sustaining this rogue regime until Tehran stands alone.”^【6】

Bessent stated that Iran faces only two options: either complete global isolation and a subsistence economy, or a path to normalization and reintegration into the global economy. He emphasized that the operation was launched to close off all other pathways. Bessent noted that the Treasury Department had mapped every connection, conduit, and network Iran uses to evade sanctions and smuggle oil, and defined the approach as a “zero leakage strategy,” adding that “the regime will not be granted even the smallest breath of space to rebuild its capacity to carry out terrorist acts against America and the world.”

Bessent stressed that countries continuing to do business with Iran cannot claim ignorance, pointing out that Iran’s supporters purchase and transport its oil, facilitate financial flows through currency exchange offices and free trade zones, accept its flights, maintain its records, turn a blind eye to ship-to-ship fuel transfers and land border crossings, and tolerate the illicit use of their banks.^【7】

Bessent indicated that each country was given a specific timeframe to halt identified activities, and warned that failure to act would prompt the Treasury Department to take unilateral action. As an example, Bessent stated that all branches of Iran’s Bank Melli must be shut down, and every entity facilitating money laundering on Iran’s behalf would be removed from the U.S. dollar system.

Bessent noted that on 23–24 August, U.S. President Trump personally contacted world leaders urging them to sever ties with Iran, though he did not disclose which countries were contacted, but stated that “we have already seen some results.”^【8】

Bessent stated that the new sectoral sanctions target five critical areas Iran uses to generate revenue and resources abroad: digital assets, technology, gold, aviation, and transportation. According to Bessent, these measures also expand the scope of secondary sanctions risk for individuals and entities maintaining commercial relations with the Iranian regime.^【9】

In response to a question about whether Chinese banks would be affected, Bessent stated during the press conference, “No one is above U.S. sanctions,” and described the policy as “suffocating the regime economically.” He emphasized that no specific deadline was given to countries for compliance, but underscored that the United States has “no infinite patience.” The Treasury Department also suspended various licenses permitting certain payments to Iran and access by Iranian citizens to U.S. cultural and academic institutions.^【10】

In response to criticism that no immediate action had been taken, Bessent said, “We are giving everyone a chance to correct their behavior. Why would I want to blow up the global financial system?”^【11】 Bessent noted that teams from the Treasury, State, and Defense Departments had contacted counterparts worldwide to communicate the urgent actions expected by the United States.^【12】

On 24 August 2026, the U.S. Department of State issued an advisory notice announcing that it had imposed sanctions on numerous entities, individuals, and vessels to expose those enabling attacks against U.S. forces and allies, and to restrict the revenue Iran uses to attack its neighbors, support terrorism, suppress its own people, and hold the global economy hostage.^【13】 All State Department designations were made under Executive Order 13846, which authorizes and reactivates sanctions related to Iran, and Executive Order 13949, which targets individuals involved in Iran’s conventional weapons activities. Simultaneously, the Treasury Department designated approximately 60 entities, individuals, and vessels as blocked property for enabling Iran’s regime’s illicit supply chains, cyber operations, and revenue networks from petroleum and petrochemical products.^【14】

According to the State Department, these sanctions target two Iran-based entities that provided sensitive imagery supporting targeting of U.S. military assets during Operation Epic Fury, and seven individuals responsible for Iran’s military activities and supply efforts. The sanctioned entities and individuals are as follows:

• DADENEGAR STARTUP STUDIO (DADENEGAR) – Supported targeting of U.S. and allied facilities in the Middle East during Operation Epic Fury, utilized commercial Chinese satellite imagery in some activities, aided Iran’s military targeting and battle damage assessment operations, and conducted an online influence operation on behalf of the Iranian government; sanctioned under Section 1(a)(iii) of E.O. 13949.
• Islamic Revolutionary Guard Corps Cyber-Electronic Command (IRGC-CEC) – Supported Iran’s military targeting during Operation Epic Fury and gathered intelligence on U.S. military assets and facilities; sanctioned under Section 1(a)(iii) of E.O. 13949.
• Mohammad Bagher Zolqadr (Zolqadr) – Secretary of Iran’s Supreme National Security Council, the highest official decision-making body on national security and defense policy, who has played an active role in sustaining support for Iran’s “Axis of Resistance.” Zolqadr was listed in Annex I of UN Security Council Resolution 1747 (2007), and this designation was reactivated on 27 September 2025 due to Iran’s “significant non-compliance” with its nuclear commitments; sanctioned under Section 1(a)(iii) of E.O. 13949.
• Ali Abdullahi (Abdollahi) – Commander of the Hatem al-Anbiya Headquarters, a previously sanctioned Iranian government entity, responsible for joint and wartime operations, and directed Iran’s kinetic actions during Operation Epic Fury; sanctioned under Section 1(a)(ii) of E.O. 13949.
• Ahmad Vahidi (Vahidi) – Commander of the Islamic Revolutionary Guard Corps (IRGC), one of the most influential political and military figures in Iran, and directed Iran’s kinetic actions during Operation Epic Fury; sanctioned under Section 1(a)(ii) of E.O. 13949.
• Seyyed Hossein Mousavi Eftekhari (Eftekhari) – Commander of the IRGC Aerospace Force and head of the unit responsible for the IRGC’s unmanned aerial vehicle (UAV) program; assumed responsibility for Iran’s ballistic missile and UAV programs during Operation Epic Fury; sanctioned under Section 1(a)(ii) of E.O. 13949.
• Seyyed Mehdi Farahi (Farahi) – Deputy Minister for Industrial and Research Affairs at Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), responsible for managing arms and related material procurement, and possesses detailed knowledge of various missile systems, including those reported to have been used against U.S. forces and allies during Operation Epic Fury; sanctioned under Section 1(a)(ii) of E.O. 13949.
• Amir Hatemi (Hatami) – Commander of the Artesh, Iran’s conventional military, responsible for conventional armament of Iran’s armed forces, and holds responsibility for missile and UAV usage, including during Operation Epic Fury; sanctioned under Section 1(a)(ii) of E.O. 13949.
• Reza Talaei-Nik (Talaei-Nik) – Spokesperson for the Ministry of Defense and Armed Forces Logistics (MODAFL), the central authority managing Iran’s military industries, supply, and logistics, who publicly defended defense cooperation with international partners in violation of U.S. sanctions and UN Security Council restrictive measures against Iran; sanctioned under Section 1(a)(i) of E.O. 13949.^【15】

The State Department also added numerous companies to the sanctions list that facilitate Iran’s illicit trade in petroleum and petrochemical products and generate millions of dollars in revenue for the regime. According to the department’s statement, Iran’s exports of crude oil, petroleum products, and petrochemicals are facilitated by front companies and intermediaries in third countries, often transported by shadow fleet operators including vessel management companies engaged in clandestine activities, and cleared through customs brokers and port agents who assist in the customs clearance of Iranian-origin goods for buyers in third countries. The main sanctioned entities and individuals include:

• PORTEASE PARTNERS LLP (PORTEASE) – An India-based customs broker that facilitated multiple shipments of Iranian petrochemical products to India; sanctioned under Section 3(a)(iii) of E.O. 13846. The company’s designated partners, Indrismiya Asharafmiya Shekh and Harish Ramchandra Rangi, were also blocked under Section 5(a)(vii) of E.O. 13846.
• CLEVER SHIPPING LIMITED – The Hong Kong-based commercial manager of the Barbados-flagged crude oil tanker STAR PION (IMO: 9389019), which loaded Iranian-origin crude oil at least six times during 2025–2026; sanctioned under Section 3(a)(ii) of E.O. 13846. The vessel STAR PION was also identified as property in which the company has an interest.
• OSHIDA PETROCHEMICAL INDUSTRIES AND TRADE JOINT STOCK COMPANY (OSHIDA) – A Turkey-based petrochemical trader that imported approximately $1 million worth of Iranian-origin petrochemical products between January and August 2024; sanctioned under Section 3(a)(iii) of E.O. 13846. The company’s Iranian manager, Mohsen Farahi, was also blocked under Section 5(a)(vii) of E.O. 13846.
• HUZUR PLASTIC CHEMICAL MATERIALS IMPORT EXPORT INDUSTRY AND TRADE LIMITED COMPANY (HUZUR PLASTİK) – A Turkey-based company that imported $28 million worth of Iranian-origin polyethylene from multiple Iranian entities, including the previously sanctioned Arya Sasol Polymer Company, between June 2022 and May 2024, and shipped over $900,000 worth of Iranian-origin petrochemical products to various Turkish companies between January and September 2024; sanctioned under Section 3(a)(iii) of E.O. 13846. The company’s Turkish manager, Cengiz Bekgöz, was also blocked under Section 5(a)(vii) of E.O. 13846.
• Narmina Dadaşova (Narmina Dadashova) – A Singaporean national and an executive or equivalent official of ALT CAPITAL PTE. LTD. (ALT CAPITAL), which was previously sanctioned under Section 3(a)(iii) of E.O. 13846 on 28 May 2026. ALT CAPITAL conducted multiple transactions facilitating the export of approximately $900,000 worth of Iranian-origin petrochemical products between March and April 2024. Dadaşova was blocked under Section 5(a)(vii) of E.O. 13846.
• SADASHIVA OVERSEAS LIMITED – An India-based company that imported approximately $69 million worth of Iranian-origin petroleum products between February 2024 and June 2025 from multiple companies, including the previously sanctioned BONJOURE COMMODITY F.Z.E.; sanctioned under Section 3(a)(ii) of E.O. 13846.
• PP SOFTTECH PRIVATE LIMITED – An India-based company that imported approximately $25 million worth of Iranian-origin petroleum products between January 2024 and June 2025; sanctioned under Section 3(a)(ii) of E.O. 13846. The company’s director, Indian national Prashant Garg, was blocked under Section 5(a)(vii) of E.O. 13846.
• ABHAR POLYMER COMPOUNDS CO. (ABHAR) – An Iran-based entity that exported approximately $1.7 million worth of Iranian-origin petrochemical products between January and September 2024; sanctioned under Section 3(a)(iii) of E.O. 13846.
• STARPLAS CHEMICAL INDUSTRY AND TRADE JOINT STOCK COMPANY (STARPLAS KİMYA) – A Turkey-based company that imported approximately $1.7 million worth of Iranian-origin petrochemical products from ABHAR between January and September 2024; sanctioned under E.O. 13846.
• PRAKRUTEES INFRA IMPEX INDIA PRIVATE LIMITED (PRAKRUTEES INFRA) – An India-based company that imported $25 million worth of Iranian-origin petroleum products between May 2023 and February 2026 from multiple companies, including the previously sanctioned BONJOURE COMMODITY F.Z.E.; sanctioned under Section 3(a)(ii) of E.O. 13846.
• SELFPLAST PLASTIC PACKAGING INDUSTRY FOREIGN TRADE LIMITED COMPANY (SELFPLAST) – A Turkey-based company that imported over $4.7 million worth of Iranian-origin petrochemical products between January 2023 and May 2024 from multiple companies, including Selenium Resources Limited; sanctioned under E.O. 13846.
• SELENIUM RESOURCES LIMITED (SELENIUM) – A Hong Kong-based company that exported over $22.8 million worth of Iranian-origin petrochemical products between January 2023 and September 2024 to multiple companies, including SELFPLAST; sanctioned under Section 3(a)(iii) of E.O. 13846.^【16】

According to the State Department’s advisory notice, as a result of these sanctions and under E.O. 13949 and E.O. 13846, all property and interests in property of the designated individuals and entities located in the United States or in the possession or control of U.S. persons are blocked and must be reported to the Treasury Department’s Office of Foreign Assets Control (OFAC).

Additionally, all entities directly or indirectly owned, individually or in aggregate, 50 percent or more by one or more blocked persons are also blocked.

State Department Spokesperson Thomas “Tommy” Pigott, in a press statement on 24 August 2026, stated that the measures also target a regime-directed cyber group responsible for extensive intrusions into U.S. critical infrastructure. Pigott also reported that a broad network of transporters and commission agents, who facilitate the shipment of Iranian oil and petroleum/petrochemical products through the United Arab Emirates, China, Singapore, and Europe to finance the Islamic Revolutionary Guard Corps–Quds Force (IRGC-QF) and other regime elements, have been sanctioned. The statement noted that the cyber component was conducted in close coordination with the FBI, which had announced charges against eight Iranian nationals the previous week for their involvement in a cyberattack campaign targeting U.S. energy companies, defense contractors, healthcare institutions, and federal, state, and local government entities.

Israeli Prime Minister Benjamin Netanyahu welcomed the U.S. decision to impose new sanctions on Iran and congratulated President Trump and Treasury Secretary Bessent. A statement from the Israeli Prime Minister’s Office asserted that the United States is justified in demanding heavy costs from Iran and those aiding it.^【17】

Chinese Ministry of Foreign Affairs Spokesperson Lin Jian, at a press conference in Beijing on 25 August 2026, stated, “China’s cooperation with Iran is conducted within the framework of international law and must not be disrupted.” Lin warned that the new U.S. sanctions risk destabilizing the global financial order, called on all parties to engage in dialogue, and declared, “Economic wars and maximum pressure are not solutions.” He argued that these steps “would escalate tensions and risks of contagion, disrupting the global economic and financial order and harming the legitimate interests of other countries,” and reiterated China’s “firm opposition” to unilateral sanctions lacking basis in international law or UN Security Council authority. China is one of Iran’s largest oil importers, and bilateral trade between the two countries exceeded $41 billion last year.^【18】

Iraqi President of the Supreme Judicial Council Faik Zeydan, during a meeting with Iran’s Judiciary Chief Gholam-Hossein Mohseni Ejei in Tehran on 25 August 2026, condemned the U.S. campaign against Iran as “economic terrorism,” and emphasized that Iraq would never forget Iran’s support during the 2003 events and throughout the years of counterterrorism. Zeydan stressed the importance of expanding judicial cooperation between the two countries and called for full implementation of all signed judicial agreements.^【19】

Iran’s Speaker of Parliament and former chief negotiator Mohammad Bagher Kalibaf (Ghalibaf/Qalibaf), in a social media post, dismissed the U.S. economic pressure campaign as a “bluff,” stating, “Americans know no one believes their bluster; the United States is not in an economic position to further restrict its relations with other countries,” and added, “Iran’s trade partners have clearly stated, both in the media and in messages to us, that they are not taking these (U.S.) statements seriously.”^【20】

Iran’s Minister of Economy, Ali Madanizadeh, responding to Bessent’s remarks according to the semi-official Fars News Agency, said, “You will fail again this time,” and added, “The government is fully prepared for this economic war.” According to the semi-official ISNA News Agency, Madanizadeh stated that it would not be easy for Iran to be cut off from global economic channels and that Iran would respond, declaring, “If they take any action, they should expect an attack against us.”^【21】 Speaking to state television, Madanizadeh said the government had a two-year plan to manage these developments, which it had long anticipated, and predicted that neither China nor Russia would accept U.S. measures, and that other countries would also resist them.^【22】

Iranian President Masoud Pezeshkian, during a meeting with Pakistan Army Chief General Asim Munir in Tehran on 25 August 2026, stated that the United States must change its approach toward Iran: “America must reassess its tone and approach in its dealings with Iran, because brutality and pressure will only complicate implementation processes.”^【23】

Pezeshkian emphasized that the United States must honor its commitments to Iran based on legitimate rights and international standards, and noted that Iran’s resilience stems from national unity and cohesion. Pezeshkian thanked Pakistan for its constructive mediation and expressed hope that the goals of the Islamabad Accord Declaration would be achieved through sustained joint will and cooperation. General Munir thanked Pezeshkian for efforts toward regional stability, stressed that diplomatic processes must be pursued with diligence to reach a comprehensive agreement, and affirmed Pakistan’s commitment to continue its facilitative role.

Islamic Revolutionary Guard Corps (IRGC), in a statement issued on 24 August 2026 on the occasion of Government Week, which commemorates the martyrdom of President Rajai and Prime Minister Bahonar in the early years of the Islamic Revolution, stated that cooperation between the government and the IRGC is key to countering increasing U.S. economic pressure. The IRGC declared it is “fully prepared for strategic cooperation with the government against the enemy’s economic war,” and assessed that “the synergy between the IRGC and the government is the key to overcoming multi-layered sanctions and strengthening national resilience.”^【24】

Iran’s Minister of Foreign Affairs, Abbas Araghchi, downplayed U.S. pressure in a statement on 23 August 2026, before the operation’s announcement, emphasizing that economic sanctions against Iran are nothing new, and said, “Unable to conceive any other solution in their struggle against the great Iranian people, they repeatedly revive the same old plans.”^【25】 Iran’s Central Bank Governor, Abdolnasser Hemmati, in a statement to the semi-official Tasnim News Agency before Bessent’s remarks, said the United States had “done everything in its power” on sanctions and that the latest claims brought no new restrictions or additional pressure. Hemmati noted that since the war began in February, Iran had anticipated “difficult conditions” and had begun accumulating foreign currency reserves, enabling it to guarantee sufficient foreign exchange for essential goods and medicines.^【26】

Iran’s national currency, the rial, fell to a historic low on 24 August 2026, trading at over 2 million to the U.S. dollar on the free market. President Trump, in posts on his Truth Social account, claimed Iran was in an “economic and military collapse spiral,” and declared, “IRAN IS COMPLETELY COLLAPSING!!!”^【27】

On the morning of 25 August 2026, the price of Brent crude oil per barrel traded at $89.55 on international futures markets, as rising commercial tensions intensified concerns about global oil demand. Brent crude’s futures price had risen to $92.06 the previous day before closing at $90.54; the November futures contract for Brent crude declined 1.1 percent from the prior close to $89.55 as of 09:32 on the same day.^【28】

Meanwhile, European natural gas prices rose approximately 4 percent on 24 August 2026 following the U.S. campaign to isolate Iran from the global financial system, as fears of energy supply disruptions reached their highest level since January 2023. The September contract on the Dutch Title Transfer Facility (TTF), Europe’s benchmark natural gas trading hub, rose approximately 4 percent to €68.45 per megawatt-hour ($79.85).^【29】