U.S. Treasury launches Operation Economic Outcast targeting Iran's sanctions-evasion networks
The United States announced a new sanctions initiative, naming 60 entities and vessels, to cut off revenue streams for Iran’s Revolutionary Guard and government as the Iranian economy faces severe inflation and currency loss.
The United States Treasury announced Operation Economic Outcast on Aug. 24, aiming to block all financial avenues that support Iran’s Islamic Revolutionary Guard Corps and the government. Treasury Secretary Scott Bessent said the effort will "foreclose every other [financial] option available to the Iranian regime" and warned that U.S. officials will act unilaterally if other countries do not halt activities identified by the Treasury.
On the same day, the Treasury sanctioned 60 individuals, entities and vessels accused of facilitating illicit nuclear and missile technology, cyber operations and oil revenue for Tehran. Bessent added that no country is exempt from sanctions, responding to questions about potential measures against China for its oil purchases from Iran.
Iran’s currency hit a record low of 2.02 million rials per U.S. dollar, and inflation is estimated at about 66 percent, deepening economic hardship for citizens and salaried security forces. Central Bank Governor Abdol Nasser Hemmati told state media that while purchasing power has declined, the situation does not constitute a collapse and that the country can still obtain foreign exchange for essential imports.
In response to the heightened pressure, Iranian officials are seeking new trade routes, including land-based pipelines with Iraq, and shifting some trade from the United Arab Emirates to China after the UAE announced a halt to financial transactions with Iran. Iraq and other regional actors are also discussing integration of Iran-backed militias into the state-recognized Popular Mobilization Forces.
The Iranian regime announced a large-scale internal security exercise, “Janfada,” involving 313,000 personnel, to demonstrate its capacity to maintain order. Meanwhile, Iran’s Supreme National Security Council secretary warned that any state complying with U.S. sanctions could be designated an enemy, echoing broader threats against foreign interests.