The Treasury Department released details Monday concerning the “Economic D-Day” U.S. officials have been promising to unleash against Iran. Dubbed “Operation Economic Outcast,” these measures include the widening of secondary sanctions to cover new sectors and activities, new sanctions on nearly 60 Iran-linked entities, the suspension of licenses for Iranian remittance payments and academic exchanges, and new guidance aimed at stopping third-countries from cooperating with Iranian efforts to control the Strait of Hormuz.
In a press conference Monday, Treasury Secretary Scott Bessent said the moves constituted “an unprecedented campaign against the Islamic Republic of Iran and its enablers” that would disrupt “Iran’s financial connections around the globe.”
But despite the harsh rhetoric, the measures were less draconian than some had expected. Bessent has so far avoided specifying deadlines for compliance, and during yesterday’s presser refused to single out China—which buys nearly 90 percent of Iranian oil.
For its part, Tehran appeared undeterred by the new sanctions. “The enemies intend to launch an economic terrorist attack on us,” Iran’s economy minister told the Tasnim news agency following the U.S. announcement, “but we also have our own tools and know how to play the game.”
Given the country’s dire economic situation, however, some analysts expect Iran to respond forcefully. “The danger is that ‘economic D-Day’ is being presented almost as a substitute for further war when it may instead become another mechanism for escalating it,” Iran expert Sina Toosi told the New York Times. “The harder Washington pushes third countries to sever Iran’s remaining lifelines, the stronger Tehran’s incentive becomes to demonstrate that participating in Iran’s isolation carries costs of its own.”
In the Gaza Strip, Israeli air strikes and tank fire reportedly killed at least four people Monday, including two children. Israel struck locations in refugee camps and elsewhere to destroy what it claimed were Hamas weapons storage facilities and other military targets. The attacks came a week after Jared Kushner traveled to Israel and reportedly asked the Netanyahu government to tamp down escalation in Gaza (the IDF has launched strikes on six of the seven days since Kushner’s visit).
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An oil tanker was hit by a projectile about nine miles off the coast of Oman, per the UK Maritime Trade Operations organization. Reporting suggested that just two commercial ships transited the Strait of Hormuz Monday, which would mark a three-month low for cross-Strait traffic.
As of Tuesday morning, Brent crude was trading at around $86 per barrel. AAA reported a national average price of $4.10 per gallon of regular gasoline.
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