US Launches Economic Isolation Campaign Against Iran
The Trump administration has launched an effort to isolate Iran economically by pressuring countries to cut ties with Tehran. The move is part of 'Operation Economic Outcast,' as described by Treasury Secretary Scott Bessent.
Iran's economy, already strained by high inflation and years of Western sanctions, faces further instability due to the UAE's decision to suspend trade relations last week. Iran had concentrated its foreign commerce among a small group of countries, making it harder for them to find alternative partners.
The success of the US strategy will depend heavily on China, which is both Iran's main oil buyer and top trading partner. However, experts say China has enough economic interests in the region to resist US pressure, at least for now.
Russia, another target of US-led sanctions, may not be able to offer significant financial support to its ally due to its own military conflict and economic crisis. Regional partners like Turkey, Pakistan, and Iraq maintain important relationships with both Iran and the US, making them hesitant to risk secondary sanctions by cutting ties with Tehran.