US Threatens to Cut Off Iranian Money Launderers from Dollar System
Treasury Secretary Scott Bessent issued a stern warning to anyone facilitating money laundering for Iran, stating that they will be removed from the US dollar system. This move sent shockwaves through markets, with oil prices falling and Bitcoin rising.
The threat was made as part of 'Operation Economic Outcast', which designates five sectors: digital assets, technology, gold, aviation, and shipping. The determination runs a single page and is effective immediately, making it the first time any country's crypto sector has been designated.
No institution was named in the initial announcement, but markets priced a warning rather than a hit. Oil prices fell by 2% to $85.76 for West Texas Intermediate, while Brent crude slid to $90.44. In contrast, gold rose to $4,653.23, its highest level in three months.
The Treasury also named Ivan Obukhov, a UAE-based broker who has processed over $100 million in cryptocurrency payments for Iran's Revolutionary Guard oil sales since 2023. This move follows pressure on Tether's kill switch, which has frozen close to $475 million in Central Bank of Iran stablecoins.