WASHINGTON -- US sanctions experts say the Trump administration's new campaign to economically isolate Iran could be an effective escalation -- but only if Washington backs its threats with action.US Treasury Secretary Scott Bessent unveiled what he called “Operation Economic Outcast” on August 24, describing it as an unprecedented effort to force Iran's trading partners to choose between maintaining commercial ties with Tehran and access to the US financial system.
Yet Bessent announced few immediate measures, leaving the central question unresolved: whether Washington is prepared to move beyond Iranian entities and smaller intermediaries and directly target the Chinese financial institutions and oil buyers central to Iran's revenue.The risk might be provoking a response from Beijing, potentially reigniting a trade war ahead of Xi Jinping's planned visit to Washington on September 24.For former US Treasury official Michael Parker, who previously served as an investigator and section chief at the Office of Foreign Assets Control (OFAC), Bessent's remarks appeared designed as much to warn and pressure foreign governments as to announce immediate sanctions.“Secretary Bessent’s comments appeared to be a public warning to buttress the US’s behind-the-scenes diplomacy,” Parker told RFE/RL. “He appeared to be giving major actors -- whether in China or elsewhere -- a chance to both change behavior and save face before taking broader actions.”
