Bessent's Economic Blitz on Iran Sparks Gold Rally, but Questions Remain

The US Treasury Secretary, Scott Bessent, launched 'Operation Outcast' on Monday, an economic campaign aimed at severing Iran's economic lifelines. The operation targets five sectors: digital assets, technology, gold, aviation, and shipping.

Bessent warned that any country doing business with Tehran would be cut off from the US dollar system. He emphasized that no one is above US sanctions and noted that President Trump would personally call countries to ensure compliance.

The move comes as spot gold reached a three-month high of $4,696 due to planned US Treasury bond buybacks and a lower USD. The price rally is largely underpinned by the expected economic pressure on Iran.

However, experts question the effectiveness of this latest round of sanctions. Tehran has weathered similar measures in the past, and its approach remains unchanged.