US Treasury chief says Washington waging ‘greatest economic isolation campaign’ on Iran

US Treasury Secretary Scott Bessent said Tuesday that Washington is carrying out what he called the "greatest economic isolation campaign" against Iran and its enablers, arguing that the pressure is taking a growing toll on the Iranian economy.

"The strength of our economy has allowed the United States to wage the greatest economic isolation campaign in history against the Islamic Republic of Iran and its enablers," Bessent said in opening remarks before the House Financial Services Committee. The committee held its annual hearing with the Treasury secretary on the state of the international financial system.

Bessent said President Donald Trump had taken action against Iran that previous administrations had deferred.

"Under his leadership, America is no longer managing the Iranian threat; we are ending it," he said, adding that US economic strength was allowing Washington to exert pressure "from a position of strength."

Bessent later said Iran's economy was in "dire straits," citing what he described as a collapse in the currency, surging inflation and long lines for gasoline.

"We have seen the currency collapse, we have seen inflation through the roof," he said, claiming that Iranians were facing three- to four-hour gasoline lines because the country had to import fuel.

Bessent attributed the pressure to a combination of the US blockade on Iran and Operation Economic Outcast, a Treasury campaign launched in August to target Iran's financial connections and entities accused of helping Tehran evade US sanctions.

"Economic Outcast is possible because of the blockade," he said, adding that Treasury had spent months mapping nodes in payment networks used by Iran.

Treasury launched Operation Economic Outcast on Aug. 24, saying its aim was to sever financial channels used by Iran to sell oil, evade sanctions and generate revenue.

Bessent also said Washington would intensify enforcement against entities accused of facilitating Iranian trade and helping Tehran circumvent sanctions.

He said measures targeting such facilitators would "start biting" on Sept. 23 and would be fully enforced.

"We know, for those of you who are enabling the regime, you know who you are, we know who you are," Bessent said, adding that Treasury would exercise its sanctions authorities "very vigorously."

Bessent said the UAE had announced steps to cut financial transactions and trade with Iran. He also said Treasury had sanctioned branches of an Egyptian bank in Dubai that transferred more than $1.8 billion to Iran since 2025.

"With China, we have had some very good private discussions," Bessent said, adding that he expected them to continue when he meets Chinese Vice Minister Liao Min this weekend and during Chinese President Xi Jinping's planned spring state visit.