Defense Secretary Pete Hegseth stated on Monday that the Trump administration’s economic pressure campaign is the primary factor affecting the Iranian government, though he said the U.S. military maintains the option to conduct airstrikes. Speaking in Oshkosh, Wisconsin, Hegseth said that while the U.S. will use "kinetic strikes" if necessary, economic measures are currently having the most significant impact.
The comments follow the announcement of "Operation Economic Outcast" by Treasury Secretary Scott Bessent. The initiative seeks to isolate Iran from the global financial system by pressuring international partners to sever ties with the country. Bessent stated that President Trump has been contacting world leaders directly, while officials from the State, Defense, and Treasury departments are coordinating with their international counterparts to request they end financial relations with Tehran.
In response to the U.S. announcement, Iranian Parliament Speaker Mohammad Bagher Qalibaf stated on the social platform X that the U.S. is not in an economic position to further restrict global relations. Qalibaf claimed that Iran’s trading partners have signaled they will not heed the U.S. warnings. Hegseth, however, maintained that the goal of the pressure is to compel Iran to negotiate regarding its nuclear program.
Military data released by U.S. Central Command (CENTCOM) on Monday reported that the U.S. military has redirected 71 commercial ships and boarded two others since resuming a naval blockade in the Arabian Sea. While over 40 humanitarian aid vessels were permitted to pass, shipping data from Kpler indicated a decline in traffic through the Strait of Hormuz, with five vessels crossing on Sunday compared to 25 on Saturday.
For individuals and businesses, the concrete day-to-day change is centered on maritime logistics and energy costs. U.S. Central Command reported that 71 commercial ships have already been redirected, and ship-tracking firm Kpler noted that successful crossings of the Strait of Hormuz dropped from 25 to five within a 24-hour period. Merchants and shipping companies will notice increased delays or the need to find alternative routes, which typically influences shipping insurance rates and fuel prices. Hegseth stated that the "ironclad" blockade is intended to leave Iran with no choice but to negotiate its nuclear program, suggesting that these restrictions will persist until diplomatic shifts occur.
The knock-on effects extend to global diplomatic relations and the stability of the international financial system. If the U.S. follows through on cutting off major trading partners from the dollar system, it sets a precedent for using the global financial infrastructure as a tool of targeted isolation. The Iranian parliament has already dismissed the U.S. claims, suggesting potential friction with U.S. allies or partners who may resist these demands. What happens next depends on the responses from foreign capitals to the calls from the State and Treasury departments; the U.S. has not yet released specific deadlines for when sanctions or exclusions from the dollar system will be enforced against third parties.