Washington: The US on Monday revealed a strategic initiative aimed at further isolating Iran economically by targeting its trading partners, amidst the ongoing Middle East conflict which shows no signs of resolution. This announcement came during a press conference by Treasury Secretary Scott Bessent, who emphasized the urgency and scope of the proposed measures.
According to Deutsche Welle, Bessent's press conference did not provide specific measures but promised rapid developments in the coming week. He introduced the plan as "Operation Economic Outcast," drawing a parallel to President Donald Trump's "Economic D-Day" analogy, which had been met with skepticism. Bessent's remarks highlighted the intention to sever Iran's economic ties globally through secondary sanctions on its trading partners, tightening the economic noose around Tehran.
Bessent articulated that Iran faces a stark choice between complete global isolation or an opportunity to reintegrate into the global economy. He claimed the Treasury has mapped the networks facilitating Iran's oil smuggling and sanction evasion, and is set to constrict these revenue sources. The US plans to hold third countries accountable, insisting on a "zero leakage approach" and warning of consequences for non-compliance.
Iran's Economy Minister Ali Madanizadeh responded to the announcement by predicting another defeat for Washington. He asserted that Iran is prepared with a two-year plan to counter the sanctions, emphasizing the resilience of the Iranian people and government. Over the weekend, Mohsen Rezaei, head of Iran's Supreme National Security Council, warned that support for US measures would be viewed as an "act of war" and threatened retaliation by targeting oil-shipping routes in the Persian Gulf.
The US strategy primarily targets Iran's trading partners like China and the United Arab Emirates, which have been significant economic allies for Tehran. Recently, the UAE announced a suspension of all trade and financial transactions with Iran. Other countries, including Turkey, Iraq, and Russia, also maintain substantial trade relations with Iran. Germany, Iran's largest European trading partner, has seen declining trade volumes amid the ongoing conflict.
Bessent refrained from specifying which countries the US would seek cooperation from, but emphasized the global scope of the effort. China's Foreign Ministry has expressed its intent to protect its rights and criticized the use of sanctions as counterproductive.
The conflict in the Middle East began on February 28 with strikes by Israel and the US on Iran, leading to retaliatory actions by Tehran. Despite a cessation of bombing, negotiations have stalled, particularly over control of the Strait of Hormuz. Efforts to revive diplomatic talks are ongoing, with the involvement of Pakistan's army chief and Oman's foreign minister in discussions with Iran.