The administration of US President Donald Trump has announced a broad sanctions programme called “Operation Economic Outcast,” aimed at fully isolating Iran from the global economy and cutting off its main revenue sources. The US Treasury Department formally announced the measure on Monday, August 24. Treasury Secretary Scott Bessent described the initiative as an “economic D-Day.”

Bessent said the operation seeks to halt all Iranian sources of income, including the oil sector, and deter other countries and companies from doing business with Tehran. He said Washington’s global objective is to sever every economic lifeline sustaining Iran’s ruling authorities and leave Tehran isolated.

The US warned countries and entities continuing oil trade or other commerce with Iran that they would be targeted if they facilitate such transactions. Bessent said countries would have to choose between the United States and Iran, adding that no one was beyond the reach of US sanctions. The announcement came amid heightened Middle East tensions, while shipping through the strategic Strait of Hormuz has fallen sharply, raising concern in international markets.