US Escalates Economic War Against Iran Amid Escalating Tensions
US-Iran tensions escalated as Washington introduced Operation Economic Outcast on August 24, expanding sanctions to cover digital assets, technology, gold-mining sectors, aviation, and shipping. US Treasury Secretary Scott Bessent specifically targeted Iran's state-owned Bank-e Melli, demanding the closure of its overseas branches under threat of being cut off from the US dollar system.
Bessent warned that any remaining connection with Tehran will accelerate the economic isolation of countries and organisations. President Trump threatened 'enormous economic consequences' for financial institutions and businesses providing support to Iran.
Iranian officials vowed to withstand the pressure, but the rial plummeted to a new historic low at 2.02 million rials per dollar following Washington's threats. The Iranian economy is experiencing a severe crisis due to mounting US pressure, with inflation forecast to reach 68.9% and GDP expected to contract by 5.4% in 2026.
The US military also carried out strikes against three Iranian oil tankers in the Gulf of Oman, further crippling Iran's ability to sell hydrocarbons. Pentagon chief Pete Hegseth stated that the US could destroy and sink Iran's tanker fleet if Tehran continues to attack US Navy vessels.