US Wages Economic War on Iran, Targeting Crypto Sector

The US Treasury has widened its power to sanction Iran's crypto sector as part of an escalating financial campaign against the country. The move, led by Treasury Secretary Scott Bessent, targets nearly 60 individuals and entities, including those involved in cryptocurrency transactions with Iranian authorities.

Bessent launched 'Operation Economic Outcast' on August 24, imposing sanctions on five new sectors: digital assets, technology, gold, aviation, and shipping. The campaign aims to sever Iran's economic connections globally, forcing the country to stand alone financially.

OFAC now has authority to sanction anyone operating in Iran's digital-asset sector, regardless of location. This expands the reach of US sanctions on Iranian crypto exchanges, which are already treated as financial institutions under Executive Order 13902.

The widening of sanctions comes amid a surge in Bitcoin price, reaching $80,887 and a 27% gain in August. The rally is attributed to a weaker dollar, increased demand for alternative assets, and renewed optimism in the crypto market.