Washington: The US announced on Monday an "unprecedented" initiative to economically isolate Iran by targeting its trading partners, as the prolonged Middle East conflict shows no signs of resolution. Treasury Secretary Scott Bessent revealed plans for what he termed "economic asphyxiation" of Tehran, primarily through secondary sanctions on Iran's trading partners.
According to Deutsche Welle, Bessent's highly anticipated press conference lacked detailed measures but promised rapid developments later in the week. The initiative, dubbed "Operation Economic Outcast," attempts to liken itself to the "Economic D-Day" mentioned by US President Donald Trump, a comparison that has drawn criticism. Bessent emphasized that the strategy seeks to cut off Iran's economic lifelines, leaving Tehran isolated unless it opts to reintegrate into the global economy.
Bessent outlined the steps the US plans to take, including mapping Iran's networks used for smuggling oil and evading sanctions. This "zero leakage approach" aims to prevent any third parties from operating in the grey areas of the conflict. He stated that world leaders are being contacted with specific requests to halt interactions with the Iranian regime, warning of consequences for non-compliance.
Iran's response to the heightened sanctions was defiant. Economy Minister Ali Madanizadeh predicted another failure for Washington, asserting that Tehran is prepared with a two-year plan to counter the sanctions. Supreme National Security Council leader Mohsen Rezaei warned of severe retaliation, including targeting oil-shipping routes in the Persian Gulf, should the economic war persist.
The focus on third countries arises from the limited direct economic leverage the US holds over Iran, which has long been under international sanctions. Iran's major trading partners include China and the United Arab Emirates, with the latter suspending all trade with Iran. Other significant partners like Turkey, Iraq, and Russia remain engaged with Iran, while Germany's trade volumes with Tehran have significantly decreased.
Ahead of the announcement, China's Foreign Ministry expressed its intent to protect its rights and criticized sanctions as ineffective in resolving issues. The US administration remains firm in its strategy, reiterating its goal to isolate the Iranian regime economically.
The Middle East conflict, which began with Israeli and US strikes on Iran, remains unresolved as negotiations have stalled. Control over the Strait of Hormuz, vital for global oil shipments, continues to be a significant obstacle. Diplomatic efforts are ongoing, with Pakistan's army chief visiting Iran and Oman's foreign minister scheduled for talks in the region.