Bessent Says U.S. Iran Isolation Campaign Is Working

U.S. Treasury Secretary Scott Bessent said on October 28 that Operation Economic Outcast, Washington’s campaign to isolate Iran’s economy, was succeeding. He described the pressure campaign as exceptionally severe and successful, and asserted that senior Islamic Revolutionary Guard Corps officials were expressing deep concern, publicly and privately, about the risk of economic collapse. Those characterizations were Bessent’s assessment. The campaign began on August 24. In an October 21 statement, the Treasury Department said it was targeting financial channels, oil-smuggling facilitators and networks that help Iran evade sanctions. It described coordination with other U.S. agencies, the European Union, Britain and Gulf partners to restrict revenue available to the Iranian government. The October 21 measures targeted the Panama- and Greece-based law firm Karnakis and Karnakis, shipping agents in Singapore and the United Arab Emirates, and cargo vessels. Treasury alleged that the networks supported Iranian commodity exports and helped generate revenue for military, weapons and nuclear programs. In that earlier statement, Bessent warned sanctions evaders: “We know who you are.” Treasury also warned that entities facilitating Iranian money laundering or sanctions evasion could lose access to the U.S. financial system. Its October 21 release described the blocking of designated parties’ assets under U.S. jurisdiction and general prohibitions on transactions involving them, subject to authorization or exemptions. The October 28 assessment did not announce a new sanctions package, numerical economic results or a deadline.