Bessent praises EU statement on effort to pressure Iran’s economy

U.S. Treasury Secretary Scott Bessent on Thursday praised a Monday statement by the European Commission which spoke favorably of Operation Economic Outcast, a U.S. plan to impose new sanctions on Iran. Bessent characterized the statement as a "strong and early stance" against the Iranian regime, as well as an agreement by the EU to take part in the plan. The statement itself said it welcomed efforts to impose economic pressure on Iran, citing Operation Economic Outcast by name, but appeared to stop short of a commitment to participate in the operation, which began on Aug. 24.

U.S. officials have also begun pushing allies to cut ties with Iran, threatening economic consequences if they continue to do business with it. The Treasury Department on Friday sanctioned a large Turkish bank for allowing the Iranian military to use it for tens of millions in transactions. Iran has threatened retaliation against countries that cooperate with the United States.

The EU statement of support for the operation came after intergovernmental meetings between central bank officials earlier this week. The EU pledged to work closely with the United States to maintain pressure on Iran.

Does that mean more EU sanctions against Iran are upcoming? The EU noted in the statement that it already adopted extensive sanctions against Iran. It didn’t announce any new measures, but said it remained ready to take them if necessary to safeguard its security and interests. Those interests included ensuring freedom of navigation through the Strait of Hormuz, the statement said.

Dig deeper: Read Stephen Kloosterman’s report on recent U.S. strikes on Iran, mostly due to its operations in the Strait of Hormuz.