Sanctions widen Operation Economic Outcast launched August 24
The US State Department and Treasury announced a fresh round of sanctions on Thursday targeting Iran’s shadow fleet of vessels transporting Iranian petroleum and petrochemical products and buyers of those products, as the Trump administration tightens its financial vise as it seeks an end to the war. The State Department sanctioned 10 entities, 6 individuals, and 5 vessels, while the Treasury simultaneously blacklisted 17 vessels tied to networks involved in transporting and trading petroleum and petrochemical products.
The State Department said the designated networks have “channeled millions of dollars to the Iranian regime, bolstering one of its most critical revenue streams and enabling its continued illicit conduct.” Treasury Secretary Scott Bessent said in a statement: “Treasury is starving the tyrannical regime in Tehran of the money it uses to wage war in the region, and we will continue exposing those who enable the regime’s oil sales.” He added: “No enabler of Iranian sanctions evasion is safe from the full force of Treasury’s authorities.”
The sanctions fit into Operation Economic Outcast, a Treasury campaign launched on August 24 with the goal of cutting Iran off from foreign sources of funds. The campaign has previously targeted Iran’s aviation industry and Russian banks linked to Iranian financial institutions, and it has operated alongside a US military blockade of shipments to and from Iranian ports that Treasury said has reduced external revenue sources for Tehran.
President Donald Trump has long turned to sanctions in his effort to coerce Iran back to the negotiating table on a new agreement aimed at preventing it from acquiring a nuclear weapon. Since the United States and Israel attacked Iran on February 28, launching the ongoing war, Iran has restricted access to the Strait of Hormuz. Trump has sought to squeeze Iran with sanctions and the blockade to force it into talks aimed at restoring freedom of navigation through the vital energy transport route.
Although direct military exchanges between Washington and Tehran have subsided in recent weeks, the war continues. Trump said Thursday he would not attack Iran before the November 3 midterm elections. He also said on social media that his administration is having “productive discussions” with Iran.