Kathmandu— The United States launched a major economic pressure campaign against Iran on Monday, vowing to cut off the country's financial lifelines and isolate it from the global economy. Treasury Secretary Scott Bessent announced the new sanctions, dubbed “Operation Economic Outcast” and likened to “economic D-day,” targeting key sectors including oil, technology, gold, aviation, and shipping. The move comes nearly six months into a conflict sparked by US and Israeli strikes against Iran, which have failed to achieve their stated objectives despite resulting in the deaths of several top Iranian officials.

Targeting Iran’s Economic Lifelines

Bessent stated that the US will target all sources of revenue for Iran, aiming to prevent international business with Tehran. He warned that any entities facilitating transactions with Iran would also be subject to secondary penalties, emphasizing “no one is above the reach of US sanctions.” The new wave of sanctions includes restrictions on 60 entities, vessels and individuals across the globe – including in the United Arab Emirates, Hong Kong, China, Singapore and Switzerland – accused of supporting the Iranian regime. These measures focus on five key areas: digital assets, technology, gold, aviation, and shipping.

Secondary Sanctions and Global Impact

The US is not only directly sanctioning Iran but also threatening penalties for countries and companies that continue to do business with Tehran. Bessent explained this approach as offering an opportunity for entities to correct “bad behaviour,” while acknowledging the potential risk to the global financial system. He stated, “Why would I want to blow up the global financial system?” This highlights the delicate balance between exerting pressure on Iran and avoiding broader economic disruption. Sina Toossi, a fellow at the Center for International Policy, noted that previous measures like an April blockade of Iranian ports have hurt Iran’s oil exports but haven't yielded the desired political outcome.

Escalation Following Military Action

The economic pressure campaign follows months of US and Israeli military strikes against Iran, which began during ongoing nuclear talks. While these attacks resulted in the deaths of Supreme Leader Ali Khamenei and other officials, they have not dislodged the Iranian government. In response, Tehran has launched missile and drone attacks across the region and asserted control over the Strait of Hormuz, a critical waterway for global energy supplies, causing oil and gas prices to surge. Pentagon chief Pete Hegseth stated that Iran cannot withstand the economic pressure and will be forced back to negotiations regarding its nuclear program.

Diplomatic Efforts and Iranian Response

US President Donald Trump has reportedly been contacting world leaders requesting they cease interactions with Iran, promising rewards for those who cooperate and isolation for those who do not. However, Iranian Foreign Minister Abbas Araghchi dismissed the US pressure as a recurring tactic, stating that economic sanctions are “nothing new.” Despite the ongoing military actions and economic penalties, multiple rounds of fighting and diplomacy have failed to resolve the crisis.

The US continues to pursue both economic and military options in its efforts to compel Iran to alter its policies, with officials not ruling out further strikes if necessary. The effectiveness of this latest round of sanctions remains to be seen.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.