Treasury Secretary Scott Bessent announced Sunday that the Trump administration will launch a new economic initiative against Iran starting Monday. Bessent characterized the move as a final stage in a broader campaign, stating that the United States has already targeted Iran’s military infrastructure and nuclear facilities through previous operations.
The new measures follow earlier military strikes and a Treasury initiative titled "Operation Economic Fury." To date, the U.S. government has frozen Iranian assets globally, restricted shadow banking networks used by the Iranian government, and placed sanctions on the Persian Gulf Strait Authority, an entity created by Tehran to manage shipping in the Strait of Hormuz.
Bessent stated that the objective of the upcoming operation is to "sever every economic lifeline" supporting the Iranian government by utilizing all available federal agencies and authorities. President Donald Trump described the plan as a large-scale isolation effort and warned other nations that their businesses and financial institutions would face economic consequences if they provided assistance to Iran.
For residents of Iran, the currency devaluation translates to a sharp decrease in purchasing power for imported goods and basic necessities. While the specific dollar amount of new assets to be frozen was not reported, the scale involves "every agency" of the U.S. government. The administration’s stated goal is to isolate the Iranian economy until the government "stands alone," which could disrupt trade routes in the Strait of Hormuz and affect global oil markets if shipping through the Persian Gulf Strait Authority remains under sanction.
The move sets a precedent for using comprehensive financial restrictions as a primary tool alongside military action. The administration signaled that it will leverage authorities that some observers previously assumed would not be used. The full economic operation was scheduled to begin at dawn on Monday, August 24, with the Treasury Department expected to implement new enforcement actions across its various bureaus. The specific duration and the full list of sanctioned entities have not yet been detailed by the administration.
In response to the U.S. actions, an Iranian minister previously criticized the administration's approach. Domestic political figures in the U.S., such as Sen. John Barrasso (R-WY), expressed support for the timing of the measures. The Treasury Department has not yet provided a deadline for when foreign entities must fully divest from Iranian interests to avoid the promised consequences.