Trump administration to unveil new financial offensive to isolate Iran — declaring dawn of ‘economic D-Day’
The Trump administration is preparing to launch what it describes as its most comprehensive assault yet against Iran’s economy, with a new package of measures aimed at cutting Tehran off economically from the rest of the world.
Treasury Secretary Scott Bessent is scheduled to announce the measures on the afternoon of August 24, as negotiations to end the U.S.-Iran military conflict continue to stall.
Bessent signaled sweeping economic action
This campaign escalates the economic pressure previously applied through Operation Economic Fury. President Donald Trump and Bessent have stated that the new measures will involve increased cooperation with U.S. allies to further weaken Iran’s economy.
On August 23, Bessent previewed the scale of the campaign on X, writing, “At dawn begins an economic D-Day — the single greatest financial offensive ever marshaled against an adversary.”
Bessent also stated, “The President has created the conditions to leverage every agency, every authority and action many assumed we would never summon. Our objective is to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone.”
Countries doing business with Iran face pressure
Last week, Bessent warned that countries maintaining commercial ties with Iran, including through financial transactions and oil purchases, would face the “full might and force” of the U.S. government.
Trump has also pledged to launch an “economic D-Day” against Iran, describing it as a “crushing” campaign intended to “cripple” the country (per The New York Times).
China presents a major challenge
The planned measures may include secondary sanctions on countries that continue to purchase Iranian oil or conduct business with Tehran. However, this approach could challenge the U.S., as China is the largest buyer of Iranian oil.
The Treasury Department has already targeted independent Chinese refineries purchasing Iranian oil, but has not imposed broad sanctions on Chinese financial institutions facilitating these transactions.
The U.S. strategy may become more complex if the new measures directly impact China, especially as Trump is expected to meet Chinese leader Xi Jinping in Washington next month.
Bessent has noted that both China and the U.S. are interested in resolving the conflict in Iran and reopening the Strait of Hormuz. “Many conversations are best to have in private. And we are confident that everyone wants the strait reopened and for energy prices to come back down,” he told CNBC last week.
Iran warned of retaliation as economy weakens
Iran’s economy has experienced a significant downturn this year due to the ongoing conflict and sanctions. Meanwhile, new security chief Mohsen Rezaei has warned that Tehran may target the interests of oil-rich neighbors if they support further U.S. efforts to isolate Iran. He also threatened to stop “even a single drop of oil” from leaving the region.