U.S. Treasury Secretary Scott Bessent welcomed the European Union's formal participation in a coordinated sanctions effort designed to restrict Iran's access to international financial networks, as Washington expands its economic pressure measures.
Bessent wrote on social media Thursday that nations across the globe are conveying to Iran's government that pressure will continue until all remaining financial ties have been cut off. The remarks followed a European Union declaration on 31 August expressing backing for measures intended to halt activities attributed to Tehran and revive diplomatic negotiations, including through an initiative called Operation Economic Outcast, which would impose further financial penalties on the Iranian government.
The meeting of Group of 20 finance ministers and central bank governors in Asheville, North Carolina, earlier this week coincided with the bloc's expression of support. Prior to the summit, Bessent had indicated his intention to push G20 peers to sever financial connections with Tehran, threatening secondary sanctions for those that did not comply.
Bessent's Thursday statement indicated that Washington intends to work alongside partner nations to prevent Iran from accessing international financial networks for the purpose of advancing its nuclear development, armaments, and affiliated groups. He further outlined plans to impose fresh secondary sanctions on a weekly basis, starting with banks, with the aim of severing any financial institution involved in Iran-linked dealings from access to dollar-denominated markets.
In late August, the White House introduced a sanctions initiative called Operation Economic Outcast, directing restrictions at Iran's access to cryptocurrency, advanced technology procurement, gold holdings, civil aviation, and maritime trade. Bessent described the initiative as aimed at disrupting Iran's international financial networks, adding that nations providing support to Tehran could face repercussions alongside the pressures already bearing on that government.
In a post dated 1 September, Iran's foreign ministry spokesperson Esmail Baghaei argued that the EU had surrendered its independence, legal structures, and guiding principles by aligning with what he described as economically coercive measures imposed by Washington.
Prior to the conflict, China served as Iran's foremost trade partner, purchasing roughly 90 percent of the country's oil exports subject to international sanctions. The EU has also upheld an independent framework of restrictive measures covering Iran's nuclear activities, ballistic missile development, and arms transfers to Russia.
Armed operations in the area have escalated over recent days, prompting fears of a wider resumption of hostilities. Pentagon forces conducted airstrikes on Iranian military installations earlier this week, describing the operations as a response to attacks on naval vessels and personnel deployed in the area. Ballistic missiles were fired by Iran, striking a number of U.S. military installations throughout the Middle East.
Traffic through the Strait of Hormuz, a waterway that handled around one-fifth of worldwide oil volumes prior to the hostilities, remained at low levels as Iran conducted intermittent attacks on vessels travelling along the southern route near the coast of Oman. American naval forces have enforced a blockade at the strait, preventing ships from accessing Iranian ports in an effort to curtail the country's petroleum exports.
According to a Friday statement, the U.S. Central Command has guided 87 commercial ships away from affected routes, rendered three vessels inoperable, and conducted boarding operations on two others to enforce adherence.