Aug 25, 2026 | China has officially slammed US threats of secondary sanctions over its trade with Iran, calling the measures illegal and vowing to take "all necessary measures" to defend its national interests. As Beijing continues to purchase an estimated 80% of Iran’s oil exports, this standoff puts the Trump administration's "Operation Economic Outcast" to the ultimate test. While US Treasury Secretary Scott Bessent announced sanctions on 60 individuals, entities, and vessels tied to Iranian trade, Chinese financial institutions were noticeably absent from the list. When asked why the White House stopped short of targeting Beijing directly, Bessent responded: "Why would I want to blow up the global financial system?"
August 24, 2026 | Treasury Secretary Scott Bessent announced a sweeping new US economic campaign against Iran and warned countries, banks, and companies around the world that helping the Iranian regime could cost them access to the US dollar system.
Bessent unveiled "Operation Economic Outcast," a campaign aimed at severing Iran's financial connections and revenue sources around the globe. Treasury announced new sectoral sanctions targeting digital assets, technology, gold, aviation, and shipping, while the Office of Foreign Assets Control is sanctioning more than 60 entities, individuals, and vessels linked to Iranian oil revenue, nuclear and missile procurement, and cyber operations.
Bessent said the US will pursue a "zero leakage" approach, warned that no country or entity is beyond the reach of US sanctions, and said nations enabling Iran are being given defined timelines to stop identified activities. He also said a major financial institution could face sanctions by the end of the week.
During questions, Bessent addressed potential sanctions against Chinese banks and shipping firms, pressure on countries doing business with Iran, Treasury bond yields and buybacks, the US-Canada relationship, and why the administration is giving Iran's economic partners an opportunity to change course before imposing additional secondary sanctions.
