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The Trump administration has announced 'Operation Economic Outcast,' a plan to impose secondary sanctions on entities that facilitate financial transactions for Iran. Treasury Secretary Scott Bessent indicated that the policy would not exempt Chinese banks, potentially escalating tensions with Beijing.
Why it matters
This policy represents a significant shift in US foreign policy and trade relations, potentially impacting global oil markets and US-China diplomatic ties.
The Trump administration on Monday announced a plan to isolate Iran's economy by threatening to impose secondary sanctions on the "enablers" keeping the Islamic Republic afloat.
"We are launching an economic onslaught against Iran's financial connections around the globe," Treasury Scott Bessent said as he unveiled the new sanctions scheme, dubbed "Operation Economic Outcast."
President Donald Trump is calling world leaders and making "specific requests to cease their interactions" with Iran, Bessent said at the Treasury Department.
The promised sanctions have yet to be imposed. The U.S. will instead start by sending timelines to individual countries to "shut down activities we have identified," Bessent said.
"Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system," he said. "The clock just started ticking."
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