The United States has unveiled a fresh package of sanctions on Iran, with Treasury Secretary Scott Bessent vowing the measures would amount to "the single greatest financial offensive ever marshalled against an adversary".
The move marks a shift in U.S. strategy in the nearly six-month war, with Washington seeking to intensify economic pressure on Iran's leadership in an effort to break the deadlock between the two countries.
Bessent announced Operation Economic Outcast, describing it as an expanded campaign to use economic measures to reopen the Strait of Hormuz and bring the war with Iran to an end.
"Today, at President Trump's direction, the United States Treasury has begun Operation Economic Outcast, an unprecedented campaign against the Islamic Republic of Iran and its enablers," Bessent said.
"In the Second World War, D-Day marked the historic beginning of a campaign with our allies to target and drive the enemy from its positions, including those in third countries. Today, in that same spirit, we are launching an economic onslaught against Iran's financial connections around the globe."
The operation broadens the scope of secondary sanctions on entities and countries conducting transactions with Tehran, while introducing new measures targeting key sectors including digital assets, gold, aviation, technology and shipping.
Bessent said entities facilitating money laundering on behalf of Iran "will be removed from the U.S. dollar system. The clock just started ticking".
However, he said many of the secondary sanctions would not take effect immediately.
"We are giving everyone the opportunity to remedy bad behavior," Bessent said.
"Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious."
Bessent added that he expects the administration to announce sanctions against a major financial institution by the end of the week.
The United Arab Emirates said last week that it had suspended financial and economic transactions with Iran, potentially limiting Tehran's access to a major source of imports and an important financial channel.
Bessent also said Iran's Bank Melli, which has branches across the Gulf, "must be shuttered and dark".
However, the effectiveness of the measures remains uncertain, with Iran having previously found ways to circumvent U.S. sanctions.
The latest action forms part of the Trump administration's broader effort to use economic pressure to force Iran to reopen the Strait of Hormuz and eventually end the war, which Washington initially said would last four to six weeks.
The conflict has now entered its sixth month.
"IRAN IS COMPLETELY COLLAPSING!!!" Trump wrote Monday morning on Truth Social, as the president continued to insist that Iran's position has deteriorated.
The measures represent the latest in a series of Treasury actions targeting Iran's economy. On 7 August, the department sanctioned several companies and individuals it accused of laundering hundreds of millions of dollars. It was the eighth such action since the start of Trump's second administration.
The department designated Shahr Bank and two Dubai-based exchange houses, Titan Exchange and Alps International, alleging they helped Shahr Bank recover oil revenue for major Iranian exporters, including the National Iranian Oil Company and Naftiran Intertrade Co.
Several Iranian nationals were also sanctioned, including Shahr Bank employee Saeed Ghasempour, who allegedly coordinated currency conversions with Russia's VTB Bank, as well as employees of Iran-based Farab Soroush Afagh Qeshm, who allegedly managed invoices and payments linked to the scheme.
A group of shell companies in Hong Kong, Singapore and Dubai was also designated over allegations that it funnelled payments through intermediary accounts.
Separately, the Treasury Department's Office of Foreign Assets Control (OFAC) sanctioned former Fly Baghdad CEO Basheer Abdulkadhim Alwan al-Shabbani for allegedly helping the Islamic Revolutionary Guard Corps-Qods Force move fighters, weapons and money to militia groups in the region. Earlier this week, however, OFAC removed Fly Baghdad from its sanctions list.
The U.S. has imposed sanctions on Iran for decades, although Tehran has repeatedly sought ways to evade the restrictions.
Meanwhile, the U.S. military has redirected 71 commercial ships as part of its blockade against Iran, U.S. Central Command (CENTCOM) said Monday.
The latest figure means U.S. forces have redirected seven commercial vessels since last Monday, when the total stood at 64.
Since the blockade began, U.S. forces have also disabled three ships and boarded two others to enforce compliance.
Central Command said more than 40 ships carrying humanitarian aid have been permitted to pass through the blockade.
