Bessent slow rolls ‘Economic D-Day’ on Iran

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The Hill's Headlines (PM) - August 24, 2026

The Hill's Headlines (PM) - August 24, 2026

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Treasury Secretary Scott Bessent rolled out the Trump administration’s much-anticipated “Economic D-Day” offensive against Iran on Monday but signaled the plan entails more of a threat than immediately bringing the hammer down, at least for now.

Bessent issued a warning during a press conference for all countries to cut off business and other financial ties with Iran or else face significant sanctions.

The plan has been named “Operation Economic Outcast” and promoted as comparable to the U.S. invasion of Normandy during World War II. But Bessent avoided naming specific countries that the U.S. is seeking to pressure and didn’t share many specific actions or a timeline that the federal government would take.

“Well, we are giving everyone the opportunity to remedy bad behavior, why would I want to blow up the global financial system?” he said, when asked at a press conference why sanctions wouldn’t take effect immediately.

Bessent said diplomacy is happening behind the scenes, as President Trump is calling world leaders to get them to cut off Iran. He said officials from the State, Treasury and Defense departments are also calling their counterparts around the world.

He expressed confidence about the plan, saying that the U.S. has “already seen some results” and emphasizing that Trump can be “quite persuasive.”

But the announcement fell short of quite the boisterous threats that the president has been making for days leading up to the move, as he seeks to force Iran back to the bargaining table and reopen the Strait of Hormuz.

“Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!” Trump said in a Truth Social post Wednesday. “This will be Economic Warfare and Isolation on an unprecedented scale.”

Trump said any country that allows its financial institutions, businesses, airports or government entities to provide “any type of lifeline” to Iran will face “TREMENDOUS” economic consequences.

While the president hasn’t ruled out additional military action against Iran, he has shifted his focus to the economic realm amid growing warnings over depleted U.S. weapons stockpiles.

One complicating factor to the “outcast” plan is the role of China, which is Iran’s largest trading partner. Bessent said “no country is above the reach of U.S. sanctions” when asked plans for China.

Experts told NBC News that the success of Bessent’s announcement will depend on whether Iran’s most powerful trading partners — China, India and Russia — deem the U.S. threats credible.

Bessent also announced other actions designed to squeeze Iran economically, including placing sanctions on 60 entities, individuals and vessels related to Iran’s nuclear and missile technology programs, its ability to conduct cyber operations and generate oil revenue.

The Treasury Department said it was expanding its authority to sanction any person, regardless of location, for operating specific sectors of the Iranian economy, including digital assets, technology, aviation and shipping.

Iran’s currency, the rial, continued to take a hit on Monday, falling to a record low of about 2.02 million to the U.S. dollar. U.S. markets seemed to mostly shrug at the news, as the Dow Jones finished slightly up compared to the start of the day, while Nasdaq and the S&P 500 finished slightly lower.

Signs of Iran’s economic struggles amid the war continue to multiply. The International Monetary Fund said its economy will contract by 5.4 percent this year, while the government is signaling a coming hike to fuel prices in a bid to buoy the economy, a move that will compound rising prices.

What’s less certain is whether that pain is increasing pressure on the hardline regime to end the war.

Iranian President Masoud Pezeshkian and parliamentary Speaker Mohammad Bagher Ghalibaf, who has led negotiations with the U.S., have pointed to the economic anxiety in remarks about the country’s war posture in recent days.

However, leaders of the Islamic Revolutionary Guards Corps are seen as digging in, promoting a more assertive approach to the war focused on “offensive operations.”

An adviser to Supreme Leader Mojtaba Khamenei said the “strategy of shifting the war to an offensive posture if Iran’s conditions are not met will undoubtedly........

© The Hill