US threatens severe sanctions on Iran's partners; China, others push back

The United States, under President Donald Trump's administration, has launched a severe new economic campaign against Iran, described by Treasury Secretary Scott Bessent as an "economic D-Day" or "Operation Economic Outcast." Announced on Monday, August 24, 2026, the expanded sanctions aim to cut off Iran's financial connections globally, with the stated objective of severing every economic lifeline sustaining the Iranian government until it stands alone. This move targets five critical sectors: digital assets, technology, gold, aviation, and shipping, alongside sanctions on nearly 60 entities, individuals, and vessels supporting Iran's economy and illicit activities.

The US has issued a stern warning to all nations maintaining business ties with Tehran, urging them to cease trade or face significant economic penalties, including being cut off from the dollar-based financial system. This aggressive economic pressure comes as a strategic shift in the nearly six-month-long conflict involving the US, Israel, and Iran, moving from military action towards financial warfare. The administration hopes these measures will compel Iran to alter its behavior and achieve greater isolation.

In response, Iran has maintained a defiant stance, dismissing the new sanctions as a sign of desperation and predicted their failure. Iranian officials have warned of retaliation and adverse consequences for any countries that choose to cooperate with the American economic offensive. Iran's economy is already under considerable strain from existing international restrictions and the ongoing conflict.