New US sanctions signal Trump desperation on Iran, experts say

The United States has imposed new sanctions on Iran and global entities involved in business with the country, an action officials have termed "Operation Economic Outcast." This move follows repeated demands by President Trump for Iran to negotiate an end to its nuclear program and alter its stance on the Strait of Hormuz. Experts suggest these economic measures are unlikely to force Iran's capitulation, viewing them as a pivot from military operations that have yielded limited success and depleted US munitions. The war has also impacted global oil prices and US military readiness, with resources redirected from other regions. The sanctions target 60 individuals and entities but reportedly exclude major Chinese banks, which are significant buyers of Iranian oil.

The US has launched "Operation Economic Outcast," threatening severe sanctions against any country or entity with economic ties to Iran, aiming to isolate Tehran economically. Treasury Secretary Scott Bessent stated the objective is to sever all financial lifelines sustaining the Iranian regime, warning that no one is exempt from US sanctions if they facilitate transactions with Iran. It remains unclear how the US will confront China, Iran's largest trading partner, which has indicated resistance to cutting ties. Iran has vowed retaliation against any nation participating in the US-led campaign. This move follows a period of impasse after previous US and Israeli actions against Iran.

President Donald Trump is implementing new sanctions and economic pressure on Iran and its trading partners, aiming to force Tehran to accept a deal on US terms. This strategy, which includes a naval blockade and economic isolation targeting nations like China and India, is intended to achieve what military actions could not. However, Iran's Islamic Revolutionary Guard Corps, which controls the Strait of Hormuz and has conducted drone attacks, may be resistant to this pressure. Experts suggest that significant economic pressure could prompt Iran to retaliate with military strikes across the Gulf, potentially targeting energy infrastructure to increase oil prices and the cost of the US effort. This retaliation could force a shift in the US approach, as Iran has demonstrated resilience to previous sanctions and military actions.

Following the initial missile strikes against Iran, the US is now implementing a strategy of intensified sanctions and economic isolation, dubbed "Operation Economic Outcast," to pressure Tehran into accepting peace terms. Announced by US Treasury Secretary Scott Bessent, these measures target Iran's remaining revenue sources and threaten penalties for those continuing to do business with the country. Gulf states, caught between US military protection and potential Iranian retaliation, face a difficult choice. While the UAE has severed economic ties, other Gulf nations are weighing the risks of provoking Iran against the benefits of maintaining diplomatic channels and reopening the Strait of Hormuz. Analysts suggest Iran may respond to economic pressure by targeting regional energy infrastructure.

Iran's President Masoud Pezeshkian stated that the world has accepted Iran's victory in its conflict with the United States, asserting that the U.S. is now "hated." These remarks come as the Trump administration continues its "economic D-Day" campaign against Iran, aiming to isolate the country and force concessions on its nuclear program and the Strait of Hormuz. Separately, U.S. Ambassador to Turkey and special envoy for Syria, Tom Barrack, commented that Israel "still" occupies the Golan Heights in violation of UN resolutions. This statement appears to contradict the official U.S. position, which recognizes Israeli sovereignty over the territory, a stance also adopted by Colombia. Barrack's comments drew criticism from a conservative activist.

Iranian President Masoud Pezeshkian stated on Friday that it is time to end the ongoing Middle East war with the US, asserting that Tehran is in a stronger position. He believes ending the conflict now, while in a position of power, is preferable. Pezeshkian also defended a June memorandum of understanding with the US, arguing it does not represent a defeat for Iran. The war, which began in February and involves the US and Israel, is currently in a stalemate. Iran is partially blocking the Strait of Hormuz, while the US maintains a naval counter-blockade. Pezeshkian claimed the world acknowledges Iran's victory and criticizes US actions.

Iran's Foreign Ministry spokesman, Esmaeil Baghaei, has condemned impending United States sanctions threatened by President Donald Trump. Baghaei stated that these sanctions, which aim to punish countries doing business with Tehran, represent a "complete erosion of sovereignty" and an assertion of "extraterritorial sovereignty" against UN member states. He argued that no nation can force foreign entities to cease commerce with Iran, likening the US actions to a return to "full-scale classic colonialism." US Treasury Secretary Scott Bessent reinforced Trump's stance, stating other countries are "either with us or against us." Iranian officials, including Foreign Minister Abbas Araghchi, have dismissed the new measures as likely to fail, citing decades of prior US sanctions.

The United States has imposed new sanctions on 60 entities across various countries, including China and Hong Kong. This action, termed "Economic D-Day" by the Trump administration, is part of an effort to economically pressure Iran. The sanctions aim to expand secondary sanctions, warning entities that maintain economic and commercial ties with Iran to take immediate action. These measures follow failed military strikes and diplomatic negotiations intended to reopen the Strait of Hormuz and resolve a six-month conflict.

Iran's President Masoud Pezeshkian has defended a memorandum of understanding with the United States as the best path forward from a stalled war, emphasizing its alignment with national interests and the need to reduce economic risk. Meanwhile, Iran's new top security official, Mohsen Rezaei, threatened retaliation against neighboring countries supporting U.S. sanctions. In the occupied West Bank, a Palestinian man reported being beaten by an Israeli settler, and Israeli forces are pursuing a suspect in a separate stabbing attack, highlighting ongoing violence in the region. Pakistan's army chief is scheduled to visit Tehran to discuss bilateral cooperation and regional de-escalation efforts.

The US Treasury Department has threatened shipping firms with sanctions if they pay tolls to Iran, warning that non-US persons could face legal consequences if such payments facilitate sanctions violations. This action comes as Iran has been targeting ships in the Strait of Hormuz following attacks by the US and Israel. The US has also imposed a naval blockade since April 13th, significantly reducing ship traffic through the vital waterway. The Treasury also sanctioned three Iranian currency exchange houses involved in converting oil revenue. These measures aim to pressure Iran's revenue streams, impacting global trade and humanitarian aid delivery due to increased costs and delays.

China's UN envoy, Fu Cong, criticized the United States on Friday for its "bullying" behavior, including sanctions against Chinese vessels and firms, and its role in the Iran war. This occurred as China assumed the rotating presidency of the UN Security Council. The US also imposed new sanctions on a China-based petroleum terminal operator as part of "Operation Economic Fury" to cut off Chinese funding to Iran. Fu Cong stated that sanctioning Chinese entities is unfair and that the Iran war exemplifies unilateralism and power politics, harming international law.