Washington, Aug 25, 2026: Washington has taken another aggressive step in its economic campaign against Iran, expanding pressure into international networks involving companies and intermediaries in countries that trade with Tehran, putting businesses outside Iran increasingly in the sanctions crosshairs as it moves to disrupt the trade and financial channels keeping Iran connected to global markets.
.@SecScottBessent: "Iran now faces a very clear choice, with only two paths before them: complete global isolation and a subsistence economy or a path back to normalcy with an opportunity to rejoin the global economy. Today, we are launching Operation Economic Outcast to… pic.twitter.com/aVLelpstgq
— Treasury Department (@USTreasury) August 24, 2026
The move has drawn responses from Iran and China. Iran says it will use its bilateral and multilateral relationships to counter the U.S. economic campaign, while Beijing has opposed unilateral sanctions and warned that pressure tactics could further destabilise the global economy.
The U.S. Treasury announced Operation Economic Outcast on Aug. 24, sanctioning nearly 60 entities, individuals and vessels across multiple jurisdictions and expanding sanctions exposure to five sectors: digital assets, technology, gold, aviation and shipping. Treasury said the campaign was designed to target Iran's financial connections around the world.
The sanctions net moves beyond Iran
Treasury said its latest designations target brokers, companies and shadow-fleet vessels operating across the United Arab Emirates, Hong Kong, China, Singapore, Switzerland, Europe and other regions to transport Iranian oil and channel revenue to the Islamic Revolutionary Guard Corps-Qods Force and other Iranian regime elements.
The department also said its new sectoral determinations expand its ability to sanction foreign persons, regardless of where they are located, if they operate in or provide services supporting the designated sectors of Iran's economy.
Treasury said countries would have defined timelines to shut down Iran-related activities identified by Washington and warned that it would act if they failed to do so. Entities facilitating money laundering or sanctions evasion on behalf of Iran also risk being cut off from the U.S. financial system.
China is the critical test
China's role makes it central to the effectiveness of Washington's effort to isolate Iran.
The U.S.-China Economic and Security Review Commission says China is Iran's largest trading partner and primary buyer of its oil, with Chinese purchases accounting for upward of 90% of Iran's exported crude. It says China imported almost 1.4 million barrels per day of Iranian oil in 2025, accounting for about 12% of China's total crude imports. The commission estimates those purchases generated about $31.2 billion for Iran in 2025.
The commission has also documented Chinese banks, front companies and intermediary firms facilitating Iranian oil transactions, sanctions evasion and access to international financial networks.
Beijing has opposed the U.S. sanctions approach. Chinese Foreign Ministry spokesman Lin Jian said sanctions and pressure tactics do not help resolve disputes and warned against measures that could further affect global economic growth and financial stability. He said China would take necessary measures to protect its legitimate rights and interests.
Iran says pressure will not force compliance
Iran has rejected the expanded U.S. campaign.
Foreign Ministry spokesman Esmail Baqaei said Iran would use all its bilateral and multilateral capabilities to counter what he described as the economic war launched by Washington.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf also rejected U.S. pressure on Iran's trading partners, saying they would not be deterred by Washington's threats.
The responses put the focus on a central issue for the sanctions campaign: whether Washington can persuade Iran's major trading partners and commercial intermediaries to close channels that Tehran continues to use.
What if the pressure fails?
The expanded campaign raises a larger question: Can additional economic pressure produce the political result Washington wants if Iran retains significant trading relationships with countries unwilling to follow U.S. demands?
The question is particularly significant because China's role gives Iran a major remaining commercial channel. The U.S.-China Economic and Security Review Commission says Chinese purchases provide Iran with tens of billions of dollars in annual oil revenue, while Chinese commercial and financial networks help Tehran mitigate sanctions.
An independent analysis by the Independent Institute has argued that sanctions alone are unlikely to force Iran to capitulate or make major political concessions, pointing to Tehran's ability to withstand prolonged economic pressure.
The issue, therefore, is not simply whether the new measures can impose further economic damage on Iran. It is whether that pressure can be converted into the political concessions Washington is seeking. Treasury has framed the campaign as a choice for Tehran between “severe global isolation” and reintegration with the global economy. It says the objective is to sever the economic lifelines sustaining the Iranian regime and accelerate enforcement against those continuing to do business with it.
