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sanctions
End Trump Oil Embargo on Cuba With War Powers Vote, Coalition Urges House Democrats
“Cuba is suffering through a man-made economic and humanitarian catastrophe, caused in significant part by deliberate policy choices of the United States."
Sep 11, 2026
Dozens of advocacy groups this week urged House Democratic leaders to force a vote on an existing war powers resolution aimed at endingr President Donald Trump's unauthorized aggression toward Cuba, including his administration's deadly de facto US oil embargo.
“Cuba is suffering through a man-made economic and humanitarian catastrophe, caused in significant part by deliberate policy choices of the United States," 45 groups said in a letter dated September 9 to House Minority Leader Hakeem Jeffries (D-NY) and Foreign Affairs and Rules Committee Ranking Members Gregory Meeks (D-NY) and Jim McGovern (D-Mass.).
"Since January 2026, the Trump administration has imposed an oil blockade that has cut off the island from nearly all fuel imports, allowing only a single tanker to dock over the past seven months alongside minor US sales that are wholly insufficient to sustain the country’s economy and basic services," the letter continues.
"The consequences have been devastating and far-reaching, and the crisis is deepening," the groups stressed. "Cuba has endured at least six nationwide grid collapses this year—at times leaving over 9h million people without power, with outages stretching well beyond 20 hours in much of the country. Fuel shortages have stalled transportation, disrupted food and water supplies, and pushed a once-renowned universal healthcare system toward collapse and the rationing of care."
The groups behind the letter—which include American Friends Service Committee, Center for Economic and Policy Research, Demand Progress, Indivisible, National Nurses United, Pax Christi USA, RootsAction, United Church of Christ, and Win Without War—called for an immediate vote on Rep. Nydia Velázquez's (D-NY) Cuba War Powers Resolution, H.Con.Res. 106.
The privileged resolution—which can be called for a vote without approval from House Speaker Mike Johnson (R-La.)—would direct the removal of US armed forces from hostilities within or against Cuba absent congressional authorization. The measure targets the de facto US oil blockade on Cuba, which proponents argue amounts to unauthorized hostilities against Cuba.
Velázquez's resolution came amid the Trump administration's escalating aggression against Cuba, including threats to attack or even invade the island, economic strangulation including the oil embargo and decades-old blockade that critics said were causing the deaths of infants and sick people, and the US Department of Justice indictment of former Cuban President Raúl Castro for his alleged role in the 1996 shoot-down of planes operated by a hostile US-based counterrevolutionary group following repeated warnings that they had violated Cuban airspace.
In April, US senators voted 51-47—with Democratic Sen. John Fetterman of Pennsylvania joining all but two of his Republican colleagues, Sens. Susan Collins of Maine and Rand Paul of Kentucky—to block a war powers resolution introduced in March by Sens. Tim Kaine (D-Va.), Adam Schiff (D-Calif.), and Ruben Gallego (D-Ariz.).
"Despite falling short of the majority, this was among the strongest votes in congressional history against the use of blockades, and one of the most important stands Congress has taken against US economic sanctions toward Cuba in over six decades," the 45 groups said in their letter. "The House should take a similarly forceful action at this crucial moment."
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'A Serious and Alarming Threat': US Bombing, Blockade Deepen Iran Medical Crisis
"The most serious risk is premature death," said one physician.
Sep 09, 2026
A senior Iranian health official on Tuesday accused the United States of deliberately targeting Iran's medical infrastructure amid a worsening shortage of critical medicines as President Donald Trump's illegal US-Israeli war of choice against Iran drags on.
Iran's pharmaceutical system is straining under US bombing, blockade, and sanctions that have severely disrupted trade and transportation in the Middle East nation of around 90 million people. Iranian officials say shortages of roughly 800 medicines—including dozens of essential drugs—are affecting the treatment of cancer and other serious illnesses.
“The enemy has identified medicine as one of the sensitive areas of the country, and is trying to denigrate and portray Iran’s conditions as unfavorable by releasing content in the press and social media," Deputy Health Minister Mahdi Pirsalehi, who also heads Iran's Food and Drug Administration, told Al Jazeera.
Pirsalehi has said that more than 50 factories and pharmacies have been damaged or destroyed by US and Israeli bombing during the six-month war. The attacks have exacerbated existing shortages.
One gastroenterologist and university professor in Tehran, who spoke to Al Jazeera on condition of anonymity, sounded the alarm on what she called a "staggering" rise in drug prices—including for domestically produced generic medications—caused in significant part by the US naval blockade.
“Reports that rotavirus vaccine imports have been halted because of the maritime blockade—and that influenza vaccines may soon face the same problem—represent a serious and alarming threat to nationwide efforts to prevent vaccine-preventable communicable diseases,” she said.
“Runaway inflation, poverty, and inadequate access to essential food groups among vulnerable populations, including infants, children, and pregnant women, signal the onset and spread of malnutrition,” she added, warning of the risk “of both communicable and noncommunicable diseases, creating a vicious cycle in which malnutrition develops and progressively worsens."
For ordinary Iranians, empty pharmacy shelves, delayed treatments, and prohibitively expensive prescription drugs have become the new normal.
One Iranian pharmaceutical company recently announced price increases for scores of drugs, including a 543% rise in the price of the Alzheimer's medication donepezil, a 308% higher cost for the antibiotic clarithromycin, and a 135% spike in acetaminophen and diphenhydramine syrups, according to reporting by Tasnim News Agency.
Dr. Hassan Nayeb Hashem told Deutsche Welle last month that "for many specific diseases, there is effectively no substitute" for prescribed drugs.
"If the medicine becomes inaccessible, patients can develop complications much sooner," he said. "The most serious risk is premature death."
One patient requiring testing for an abdominal and pelvic mass recently told Iran International that CT and MRI scans now cost over $100, even with Social Security insurance—the equivalent of a month's pay for many Iranians.
“How are we supposed to pay these costs with such meager incomes?” they asked.
A 33-year-old man said the exorbitant cost of dental treatment has left him without half of his teeth.
“I feel like I’m 60,” he said. “The bitter part is that this humiliating way of life has become normal for me.”
Another Iranian said they feared what would happen if anyone in their family got sick this winter.
“We’re stressed about where we would get the money for treatment," they said, "if God forbid we or our children even catch a cold."
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Trump's Economic Nationalism Won't Rescue the US Working Class
Placing the drive for profits before the needs of the human population is the normal operation of the capitalist system as ruling class interests use two-party politics to craft laws and policies that benefit elites, billionaires, and corporations.
Sep 04, 2026
The falling US share of the world economy—40% in 1960 versus 25% in 2026—is a driving force of economic nationalism stateside. Its rhetoric under President Donald Trump is America First, with abundant use of sanctions, tariffs, and war—directly with Iran and by proxy in Israel and Ukraine. On the note of warfare, the president has used military operations abroad as did Presidents Bill Clinton, Barack Obama and Joe Biden since the fall of the former Soviet Union on December 26, 1991, heralding a big change in the world order.
Another landmark change in the global order is China's share of the world economy (3.5-4% in 1960 versus 19-205 in 2026). Currently, China is a manufacturing world power. The nation is also blessed with a bevy of natural resources such as rare earth minerals like erbium and yttrium. Advanced electronics and artificial intelligence, prominent industries stateside in 2026, rely upon these two heavy elements.
Accordingly, given the history of US militarism and racism against Asians, the contradictions of economic nationalism, the America First rhetoric, are plentiful. President Trump refers to America's interest as "ours" and "we" when he speaks of other nations cheating the US. This is a bid to unite the class interests of elites (billionaires and corporations, key donors to Democrats and Republicans) with workers. Thus the economic rise of China is a big target of distortion.
China's prominent trading partners help to form the grouping of BRICS (Brazil, Russia, India, China, and South Africa) nations. There is a BRICS summit in New Delhi, India set for September 12-13.
An affordability crisis of working and poor people stateside as their tax dollars flow away from them and into the congressional-military-industrial complex is the tip of a proverbial iceberg.
Speaking of military operations, US Treasury Secretary Scott Bessent announced increased economic warfare against Iran plus any countries doing business with that Persian nation, the Shanghai Cooperation Organization (SCO) met in Kyrgyzstan. Nations’ heads of state attending this gathering ranged from China, Russia, India, Iran, and Pakistan to Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The SCO also addressed measures to counter Uncle Sam’s deeds worldwide, including the US war against Iran and Israel's genocide of Palestinians.
In the SCO’s Bishkek declaration, the members also pledged to “support and strengthen an open, transparent, fair, inclusive, and non-discriminatory multilateral trading system based on generally accepted international principles and rules that promotes global economic development, ensures fair market access, and ensures special and differential treatment for developing countries.” Uncle Sam is looking at challenges to it alone calling the shots of a world order that gets its marching orders from Washington, DC. Meanwhile, the US is pursuing attempts to dominate other nations to boost the bottom line of America's elites.
Think of Uncle Sam’s taking of Venezuelan oil reserves, the details of which are emerging, glacially. Then there’s the talk from Washington of the US using tactical nuclear weapons to subdue Iran. The president has been threatening to take Greenland. He has also launched a trade war against Canada, a major US trading partner, claiming the neighbor to the north has been unfairly treating America.
Recall the president’s premise for his America First approach to jobs and economic gains? US global trade partners had been ripping off America. He was going to solve that problem, draining the swamp of Washington insider corruption, and so on. Wait. What?
For starters, US industry made the call to move abroad. To be clear, the deindustrialization of the Midwest and Northeast was a bipartisan priority that the political establishment facilitated, based on decisions made in corporate boardrooms. Democrats and Republicans supported corporate America moving production abroad to pursue higher returns on investment and weaker environmental policies.
Placing the drive for profits before the needs of the human population is the normal operation of the capitalist system. Ruling class interests use two-party politics to craft laws and policies that benefit elites, billionaires, and corporations.
The contradictions of economic nationalism and the world order are growing. An affordability crisis of working and poor people stateside as their tax dollars flow away from them and into the congressional-military-industrial complex is the tip of a proverbial iceberg. The worsening climate crisis that profits billionaires and corporations in the short-term as the political duopoly facilitates this ecocide is a wake-up call for movement politics.
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Iran Says Trump's New Attacks Show Americans 'Stuck in the Massive Error They’ve Made'
"We cannot accept any orders being dictated upon us," said the spokesperson for Iran's Foreign Ministry. "If they continue with this philosophy, they will not get any different result.”
Sep 01, 2026
As US President Donald Trump returns to bombing Iranian territory, Esmaeil Baghaei Hamaneh, the spokesperson for Iran's Foreign Ministry, said at a press conference on Tuesday that it's only a sign of the quagmire he's found himself in, and emphasized that the only way out will be negotiation rather than force.
"It has become clear they are now stuck in the massive error they’ve made, and it’s their usual habit to raise excessive demands," Baghaei said, noting that mediation efforts by Pakistan were continuing even as the Trump administration claims that Iran is refusing "meaningful negotiations."
When Trump launched the war in February, he predicted that Iran would be brought to its knees in a matter of weeks. Six months later, there is no sign that an end to the conflict is in sight as Trump rejects a return to the negotiating table.
Baghaei said it's clear that the US was once again falling into "a state of miscalculation." Iran, he said, had been adhering to the Memorandum of Understanding reached in June, while the US refused to abide by its terms of ending its economic blockade, unfreezing assets, and ending threats of aggression, as well as ending attacks by US ally Israel in Lebanon.
Baghaei said Iran was willing to reach another agreement to end the war. The problem, he said, was that Trump had shown himself unwilling to follow any deal that included concessions to Iran and was demanding its full capitulation.
"We cannot accept any orders being dictated upon us," Baghaei said. "If they continue with this philosophy, they will not get any different result.”
Iranian President Masoud Pezeshkian echoed Baghaei's position on Tuesday, saying that Iran would “immediately reciprocate” if Washington honored its commitments under the June interim agreement.
Failing to break Iran with military might, Trump tried to switch last month to a strategy of "economic warfare," imposing "the toughest sanctions in history" and pressuring other nations around the world to do the same in an effort to isolate Iran and fully topple its government.
Baghaei acknowledged that US sanctions were having a devastating effect on the people of Iran. According to Reuters, Iran's foreign trade is down by 35%, and inflation reached 66% in July, cranking up the pain felt by the civilian population.
But efforts to create the "greatest coordinated economic isolation in the history of the world," as Treasury Secretary Scott Bessent described it, have faced resistance, with Iran's major trading partners such as China and Pakistan refusing to cut ties.
"Six months of US bombing and naval blockade have produced no US victory, so the plan now is to starve Iran into capitulation," wrote Columbia University professor Jeffrey Sachs and UN Sustainable Development Solutions Network adviser Sybil Fares on Monday for Al Jazeera. "The new approach is illegal, cruel, and will fail for several reasons."
"To begin with, there is the historical record. Economic sanctions do not bring down governments determined to survive them. Yes, sanctions can impoverish populations, empower the security services that control smuggling, and hand the targeted nation a rallying point built on US malice," Sachs and Fares wrote.
They added that at a time when Iran's restrictions on travel through the Strait of Hormuz have spiked oil prices and sent shocks through the global economy, there is little incentive for the world to cut off Iran's oil exports as well.
"The US proposes to deepen a stagflationary shock already being borne by Europe, Japan, and its other allies, and orders those countries to enforce sanctions that will throttle their economies," they wrote.
And due to Trump's erratic policy, disregard for the United Nations Charter in launching a war of aggression, and the demonstration that his assurances are "unreliable," Sachs and Fares noted that countries are increasingly reaching agreements that rely less on US military guarantees and dollar-based trade.
"Pride goeth before the fall, and no government today is more arrogant than the US under Trump and his enforcer, Bessent," they wrote. "Governments around the world will not follow the US blindly into disaster."
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Canada and the United States of Coercion
In the face of Trump administration threats, Canada has learned from Russia and Iran how to stand up to US economic pressure.
Sep 01, 2026
Cuba is starving. Iran is being economically cut off from the world. And Russia is the target of a sanctions regime unlike any that a major nation has ever faced.
The US secretary of state has abandoned his post to play viceroy of Venezuela, and his role has been filled by the amateur team of Steve Witkoff and Jared Kushner. American evolution has favoured the Pentagon and Treasury, while the State Department has gone extinct. Coercion is America’s only foreign policy strategy, and bombs, sanctions, and tariffs are its only tools. The US “will negotiate with bombs” and with “economic statecraft.”
Canada, previously America’s closest ally and its second largest trading partner, is now feeling the weight of that coercion in an economic assault unimaginable for most of the modern history of Canadian-American relations. The relationship changed at the start of President Donald Trump’s second term when he announced that he was prepared to use “economic force” to absorb Canada into the United States. “You’re at war when you get attacked,” Canada’s Prime Minister, Mark Carney, said. “We got attacked.” Canada has been subjected to economy-crushing tariffs and warned to “fall in line or, the consequences for Canada will be far WORSE!”
The punishing 50% tariffs are meant to coerce Canada into surrendering aspects of its sovereignty. Part of what caused the latest round of trade talks to explode was demands that made Canada “a subsidiary of the United States” and “compromise[d] Canada’s sovereignty.”
The US is no longer a hegemon that leads for the mutual benefit of the West. It is a bully that coerces its former friends to “fall in line” for the singular benefit of America.
The US reportedly demanded compromises on the protection of French language and culture that is essential to Canadian federalism and unity. The US wanted Canada to repeal laws that promote French language shows to Canadian subscribers of streaming platforms and wave requirements that package labeling be in French as well as English (a demand the US now seems to have dropped).
They also demanded fealty on crucial trade decisions. The Trump administration demanded that Canada comply with American demands on what tariffs it places on other countries and what countries it trades with. Negotiators went so far as to insist on the right “to review and potentially dictate the terms for Canada’s trade agreements with other countries.” American dominance would be enshrined with the prerogative “to change tariff policy against Canada at any time, irrespective of the agreement.”
The US had already set the precedent for this imperial strategy in other countries. In March, Trump declared that he “will be having the honor of taking Cuba.” Toward that end, he cut Cuba off, mandating that “THERE WILL BE NO MORE OIL OR MONEY GOING TO CUBA—ZERO,” adding that “I strongly suggest they make a deal, BEFORE IT IS TOO LATE.” He then signed an executive order imposing tariffs on any country that sends oil to Cuba.
Despite the devastation that embargo has caused the people of Cuba, the Trump administration has continued to tighten its stranglehold, ever increasing the sanctions. “We have a pretty deep toolbox, especially when it comes to sanctions and enforcing them,” a senior administration official told Axios. “More is on the way.” On August 20, the US announced further sanctions.
The same playbook is being employed in Iran where Treasury Secretary Scott Bessent, who has become Trump’s chief executioner, has boasted of America’s ability to starve people into the streets and countries into submission. “President Trump ordered… maximum pressure on Iran. And it’s worked,” he said, “because in December, their economy collapsed... and this is why the people took to the street. This is economic statecraft.” Bessent told the Senate Banking Committee that “what we have done is created a dollar shortage in the country… The Iranian currency went into free fall, inflation exploded, and hence we have seen the Iranian people out on the street.”
But neither the people in the streets nor the brutal bombing campaign accomplished America’s goals in Iran. So, Washington turned to intensified economic warfare. Bessent has threatened the “toughest sanctions in history.” Trump called it “economic D-day,” "Economic Warfare and Isolation on an unprecedented scale.”
But the coercion extended beyond Iran. Trump warned that “ANY country that… provide[s] any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences.” Bessent provided the details, announcing “an economic onslaught against Iran’s financial connections around the globe.” He said, “Our objective is to sever every economic lifeline that sustains this tyrannical regime until it stands alone.” He then threatened that “any economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power.”
That global coercion is being challenged. China called the US threat “illegal unilateral sanctions” and promised that it will “take all necessary measures to firmly safeguard its own rights and interests.” Chinese foreign ministry spokesman Lin Jian said, “Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted."
Shockingly, like Cuba, neither Russia, Iran, nor Canada have backed down. Though Canada can hardly be called a fellow traveler of Russia or Iran, it has learned similar lessons and come to similar conclusions.
Like Russia, Canada has learned that, in the face of tariffs or sanctions, it must rely less on the US and more on itself. Russia has tried to substitute lost American business with domestic replacements. “Building at home,” Carney said, is “our plan A.” He says that Canada is “focused on building strength at home…. Launching big nation-building projects…. And… building Canada strong.”
Like Iran, Canada has learned that America’s “signature [is] written in pencil” and that countries negotiating with the US need to call “into question the reliability of any deal.” Like Iran, Canada has learned that deals with the US can be broken, like the Joint Comprehensive Plan of Action nuclear agreement and the US-Mexico-Canada free trade agreement. Like Iran, Canada has learned not to make any concessions in exchange for future promises but to get everything guaranteed up front because the US can change the terms any time, irrespective of the agreement.
The US is no longer a hegemon that leads for the mutual benefit of the West. It is a bully that coerces its former friends to “fall in line” for the singular benefit of America. Its former friends follow, no longer out of partnership, but out of fear.
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'There Is Absolutely No Justification': Bessent, Rubio Urged to End Sanctions Impacting Iranian Students
"There is no world in which the US preventing young Iranians from taking English proficiency tests leads to the opening of the Strait of Hormuz, and yet that appears to be the rationale for this cruel new policy.”
Aug 31, 2026
A leading grassroots advocacy group for the rights of Iranian Americans called on the Trump administration Monday to rescind the recent message it sent when it announced new sanctions against ordinary Iranians—"that the US is at war with the Iranian people"—and to ensure that "humanitarian, educational, and cultural" entities are exempt from the sanctions.
The National Iranian American Council (NIAC) wrote to Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, warning of the "escalating harm caused by the imminent suspension of long-standing general licenses that had enabled American universities, educational testing and assessment organizations, and other entities to provide educational opportunities to Iranian nationals."
The group appealed to Bessent and Rubio following reports that the Education Testing Service, which administers the Test of English as a Foreign Language (TOEFL) and the Graduate Record Examination (GRE), has suspended testing in Iran following the sanctions. The Duolingo English Test, developed by the language course platform Duolingo, has also been made unavailable in Iran and for students with Iranian IDs.
Despite the fact that President Donald Trump's new sanctions, called "Operation Economic Outcast," are purported to target the Iranian government as it restricts access to the Strait of Hormuz in retaliation for the US-Israeli war against Iran, the policy changes have "no conceivable impact on the Iranian government," wrote NIAC president Jamal Abdi.
"Instead, it is already being felt by American entities and Iranian students," Abdi wrote. "Iranian students have been barred from taking key exams required for academic studies by US organizations."
Abdi called on the administration to immediately reinstate 31 CFR § 560.544, which authorizes "certain educational activities by US persons in third countries," and Iran General License G, which authorizes educational exchanges.
“The Trump administration would be wise to bolster the limited educational, humanitarian, and cultural channels that exist between ordinary Iranians and the United States, rather than send a message that the US is at war with the Iranian people.”
"For years, Iran was among the nations with the highest demand for TOEFL examinations," he wrote. "Regrettably, the severing of these key global educational testing platforms will create major hurdles for Iranian nationals pursuing international education."
The administration's policy changes leave Iranian students facing "overlapping barriers to studying in the United States: a travel ban preventing Iranians from securing US visas, alongside sanctions restricting access to English proficiency exams, educational services, and enrollment in US universities," said NIAC.
“There is no world in which the US preventing young Iranians from taking English proficiency tests leads to the opening of the Strait of Hormuz and yet that appears to be the rationale for this cruel new policy,” said Abdi in a statement. “The Trump administration would be wise to bolster the limited educational, humanitarian, and cultural channels that exist between ordinary Iranians and the United States, rather than send a message that the US is at war with the Iranian people.”
Abdi also urged Bessent and Rubio to reverse the suspension of licenses for Iranian Americans to send remittances to family members in Iran and those that allow sports matches between Iran and the US. The latter suspension, he wrote, "carries significant risk of complicating the 2028 Olympic Games in Los Angeles and reflects poorly on the US as a host nation while yielding no discernible benefit."
The exemptions that have been suspended by the White House, said Abdi, "were first established over a decade ago to resolve harmful unintended consequences of US sanctions, such as cutting ordinary Iranians off from academic opportunities."
"Now, it appears that these have become very much intended consequences aimed at the Iranian people, which is a self-defeating message for the US to send to Iranians and the world,” Abdi continued. “There is absolutely no justification for this."
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Opening Salvo of Trump's New Economic Assault Is 'Aimed Squarely at Ordinary Iranians'
"It is senseless, punitive collective punishment."
Aug 26, 2026
The Trump administration has repeatedly claimed it is targeting the Iranian government and coming to the aid of the nation's people by waging all-out war on the Middle East country, but an analysis of US policy changes announced this week indicates that ordinary Iranians will bear the brunt of the pain from the White House's new economic assault.
The National Iranian American Council (NIAC) noted that the first actions that the Trump administration has taken under its so-called Operation Economic Outcast "are aimed squarely at ordinary Iranians and at severing personal, familial, academic, and cultural relationships between Americans and Iranians." The group noted that the Trump administration has "suspended key humanitarian exemptions from existing sanctions on Iran designed to allow Iranian Americans to send personal remittances to family in Iran, to allow universities to enroll or offer scholarships to Iranian students, and to allow for sports exchanges involving American and Iranian athletes."
NIAC went on to cite specific examples:
- 31 CFR § 560.544: Allowing universities to recruit, enroll, and educate students who are ordinarily resident in Iran, and offer them scholarships;
- 31 CFR § 560.550: Allowing Americans to send personal, non-commercial remittances to non-sanctioned persons in Iran.
- 31 CFR § 560.554 and Iran General License G: Allowing academic and educational exchanges between the US and Iran.
- Iran General License F: Allowing for friendly matches and other sports exchanges involving the US and Iran.
"We have had decades of sanctions underscore that collective punishment is strategically and morally wrong," said NIAC president Jamal Abdi in a statement. "Iranian civilians have grown poorer while the government elite has been unscathed.”
US Treasury Secretary Scott Bessent declared earlier this week that the Trump administration is "launching an economic onslaught against Iran’s financial connections around the globe" with the stated goal of severing "every economic lifeline that sustains this tyrannical regime until Tehran stands alone." Bessent said the administration has given "every country" a "defined timeline to shut down activities we have identified."
NIAC said Tuesday that "rather than devote US resources to strengthening sanctions exemptions for ordinary people and making the sanctions 'smarter' by targeting them against decisionmakers and bad actors, the administration is making our sanctions dumber and even more blunt."
"This is a radical revision to the Iran sanctions architecture: ending the ability of Iranian Americans to send their family any remittances, blocking universities from enrolling Iranian students, ending sports exchanges," said Ryan Costello, NIAC's policy director. "It is senseless, punitive collective punishment."
The intensified economic warfare comes after months of an illegal, widely unpopular, deadly, and economically destructive war that Trump and his Israeli counterpart, Prime Minister Benjamin Netanyahu, launched in late February.
Esmaeil Baghaei, the spokesperson for Iran's Foreign Ministry, said Tuesday that the new US economic assault is "about annihilating the most foundational rules of international law and the UN Charter—namely, respect for the sovereign equality and self-determination of all states."
"When a bully declares that every bank, company, port, and government must choose between obeying Washington’s whims or facing American vengeance, this is no longer just about Iran," Baghaei wrote in a social media post. "No decent state that values its sovereignty and national interests will accept the normalization of such grand lawlessness and systemic bullying."
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Bessent Suggests Economic Warfare Against Iran Could 'Blow Up the Global Financial System'
"Operation Economic Outcast will not only fail," warned one expert, "but the economic noose that actually tightens may end up being the one wrapped around our neck."
Aug 24, 2026
With the United States unable to militarily defeat Iran in President Donald Trump's illegal US-Israeli war of choice, Treasury Secretary Scott Bessent on Monday escalated the administration's economic attacks on Tehran, warning countries and companies around the world that continuing to do business with the nation could expose them to punitive sanctions.
“Let there be no ambiguity as to the position of the United States,” Bessent said during a news conference unveiling what the Trump administration is calling Operation Economic Outcast. “An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power.”
The "economic D-Day" campaign targets five sectors—technology, gold, aviation, shipping, and digital assets—and is intended to choke off virtually every remaining source of hard currency for Iran.
Bessent warned that it is “no longer acceptable to operate in the gray spaces” of US policy. The secretary said he anticipates the announcement of sanctions against a major financial institution as soon as next week.
Asked if Chinese banks that do business with Iran would be sanctioned, Bessent replied that "no one is above the reach of US sanctions."
While Bessent did not say which countries would likely be targeted, China, Türkiye, and the United Arab Emirates are Iran's biggest trading partners.
The secretary was also asked why sanctions aren't being imposed immediately.
"Well, we are giving everyone the opportunity to remedy bad behavior," he replied. "Why would I want to blow up the global financial system?"
"We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious," Bessent added. "So we believe that a warning shot and a level set of expectations is appropriate, and if people do not want to meet our expectations, then we expect—and they should expect—that they will leave the dollar system."
Iranian officials largely scoffed at Bessent's "economic D-Day" threat. Deputy Iranian Foreign Minister Kazem Gharibabadi asked on social media, “Is this a victory or an admission of America’s failure!?”
“You say Iran’s military capability has been ‘dismantled,’ 100% of its military factories ‘destroyed,’ and its nuclear program ‘buried’; but for this very Iran, the ‘largest financial assault in history’ and the mobilization of ‘all US institutions and authorities’ have been necessary!” he mocked.
While Trump has said the war is “over” or nearly over dozens of times, Iran currently appears to have the upper hand, as shipping has overwhelmingly avoided the US-supported route through the Strait of Hormuz, with most vessels using a course set by Tehran or avoiding the waterway altogether.
Trump’s war on Iran is proving costly not only in Iranian lives and US taxpayer dollars, but in the increasingly strained budgets of American families. Disruptions to oil shipments through the Strait of Hormuz have pushed gasoline prices above $4 a gallon nationally—roughly a dollar more than a year ago. Trump has dismissed Americans' concerns about high fuel prices, saying $4 is "not very high" and vowing to "never apologize" for the economic pain his actions are inflicting.
That pain doesn't stop at the pump. More expensive gasoline and diesel ripple through the economy, raising the cost of transporting food and other goods while keeping inflation elevated.
The pain is far worse for the people of Iran. Trump administration's escalation comes as Iran's currency, the rial, has plunged to record lows amid an economic crisis largely caused by the war and years of preceding US-led sanctions.
However, the administration's effort to force every country to choose between trading with Iran and maintaining access to the US-dominated financial system could have consequences far beyond Tehran.
At a Monday press conference in Beijing, Chinese Foreign Ministry spokesperson Lin Jian said that sanctions “lead to escalation" that "serves no one’s interests.”
“China calls on parties to act rationally and with restraint and avoid taking any measures that may further escalate tensions or deal a blow to global economic growth and financial stability," he continued.
The Chinese government “will closely watch relevant developments and do what is necessary to protect our legitimate rights and interests,” Lin added.
Operation Economic Outcast drew worldwide derision.
“President Trump, the ultimate gambler in geopolitics, is poised to double down on a bad hand on Iran yet again," National Iranian American Council policy director Ryan Costello said in a statement.
“We’ve been down the maximum pressure road with Iran many times," he noted. "What we’ve learned is that President Trump can impose extensive economic pain on Iran, but ordinary Iranians overwhelmingly bear the cost. The ruling elite in Iran remains largely insulated, while Tehran has repeatedly refused to capitulate to Washington’s demands."
"Trump’s gamble is that this time, amid the destruction of war, and with the reinforcement of a blockade, time is on his side and ultimately Iran will be forced to concede defeat," Costello added. "President Trump has proven unable and unwilling to stop his gambling on Iran that risks further undermining US and regional security and the global economy.”
Sina Toossi, a senior nonresident fellow at the Center for International Policy, said on social media that Operation Economic Outcast "is as much psychological warfare as economic warfare: Project Iran’s isolation as inevitable, convince markets Hormuz is being overcome, and amplify economic anxiety inside Iran."
"But the bravado masks a basic problem," he asserted. "The military option failed to compel Tehran, Iran still possesses substantial escalation dominance over the Arab Persian Gulf states, and 'severing every economic lifeline' requires countries like China to enforce a US strategy they openly reject."
Washington "is effectively betting it can achieve through intensified economic strangulation what six months of war could not," Toossi added. "And it is demanding unprecedented international compliance at a moment when US relations with much of the world are becoming much more coercive and transactional. The capacity to hurt Iran is clear. The path from pain to capitulation or collapse is not."
Alan Eyre, a former State Department Iran specialist and current Middle East Institute distinguished fellow, argued that "the problem with Operation Economic Outcast is it continues the trend of making the US an economic outcast."
Stockbroker and financial commentator Peter Schiff said on X that "because Trump failed to achieve his objective in Iran using military force, he has pivoted to using economic sanctions instead."
"However, Operation Economic Outcast will not only fail," he added, "but the economic noose that actually tightens may end up being the one wrapped around our neck."
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Iranian Officials Scoff at US Treasury Secretary's Threat of 'Economic D-Day'
"Is this a victory or an admission of America's failure!?" asked Iran's deputy foreign minister.
Aug 24, 2026
Top Iranian officials on Monday ridiculed the Trump administration's threats of total economic warfare against the Middle East country, calling the US Treasury Department's proposed "financial offensive" an act of desperation as the costly conflict drags on with no end in sight.
"Is this a victory or an admission of America's failure!?" Kazem Gharibabadi, Iran's deputy foreign minister, wrote on social media after US Treasury Secretary Scott Bessent laid out the Trump administration's planned economic assault in a Sunday op-ed for the Financial Times titled, "An Economic D-Day Is Coming for Iran."
In a social media post promoting his op-ed, Bessent declared that US President Donald Trump has "dismantled Iran’s military capabilities, destroyed nearly 100% of its military factories, and buried its nuclear program."
"We are now entering the endgame," Bessent added. "At dawn begins an economic D-Day—the single greatest financial offensive ever marshaled against an adversary."
Gharibabadi responded that Bessent's "narrative doesn't add up."
"You say Iran's military capability has been 'dismantled,' 100% of its military factories 'destroyed,' and its nuclear program 'buried'; but for this very Iran, the 'largest financial assault in history' and the mobilization of 'all US institutions and authorities' have been necessary!" Gharibabadi wrote.
Iran's top diplomat, Abbas Araghchi, similarly dismissed the Trump administration's vow to intensify its economic warfare against Iran, saying it is "bound to fail."
"We have seen this movie before," said Araghchi. "Same bull. Different bullies."
Bessent is expected to unveil the details of the economic measures in a press conference on Monday, initiating a new phase of a war that the US and Israel launched in late February.
Analysts said the renewed threats of all-out economic warfare are reminiscent of the "maximum pressure" campaign that the first Trump administration launched against Iran after shredding the Obama-era nuclear accord, setting the stage for the current war.
"The United States can certainly inflict a significant amount of pain on the Iranians," Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, told CNN over the weekend. "But to bring them to some sort of a breaking point that would cause them to surrender, I find extremely unlikely. I think we should remind ourselves: We've been here before. This is what the maximum pressure sanctions were supposed to do eight years ago."
"If this ends up becoming successful in terms of putting a lot of pressure on the Iranians," Parsi added, "then the most likely outcome is that they will counter-escalate, and their counter-escalation could be striking countries in the region."
Esmail Baghaei, a spokesperson for Iran's foreign ministry, warned during a press conference on Monday that "any collusion with the United States in this plan will certainly have consequences."
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After Bessent Comments, China Warns US That It Cannot Sanction Iran Out of Existence
A spokesperson for the foreign ministry of China, which receives 80% of Iran's oil exports, said that going along with Trump's "economic warfare" will "only lead to escalation that serves no one’s interests."
Aug 21, 2026
The Trump administration is once again threatening to carry out "regime change" in Iran, this time using what President Donald Trump described as "economic warfare" against the nation rather than military might.
But as Treasury Secretary Scott Bessent demands the world play along with efforts to isolate Iran, the second-largest economy, China, is refusing to join the US sanctions campaign.
The Trump administration has failed to use military means to force Iran to open the Strait of Hormuz after it began restricting travel in retaliation for US and Israeli attacks in late February.
On Thursday, Bessent told CNBC that the new approach is to impose the "toughest sanctions in history” on Iran, ramping up a strategy that has inflicted suffering on the Iranian people but failed to force its leaders out of power for nearly 50 years.
Bessent emphasized that it would only work with the help of "all of our allies" carrying out the "greatest coordinated economic isolation in the history of the world."
He made very explicit the goal of ratcheting up pressure on the regime by inflicting pain on the nation's 90 million people, by causing "substantial inflation, both food inflation and ordinary inflation in Iran." He compared the effort to the use of sanctions to strangle the economies of Venezuela and Cuba, which have fueled humanitarian crises in both countries.
Bessent gave an ultimatum that every nation is "either with us or against us," and warned those who refuse to help with the administration's effort to "squash the economy" of Iran that the US would "put its full might and force toward enforcing against you."
He promised that any country that provides a "lifeline" to Iran would itself be sent into "economic oblivion."
Iran responded to the threats by vowing a fearsome retaliation. "With preparedness across land, sea, air, air defense, and cyberspace, Iran's armed forces will respond to the enemy's new threats with crushing, punishing, and devastating responses," said the chief of staff of Iran's armed forces, Maj. Gen. Ali Abdollahi.
Iran's parliament speaker, Mohammad Baqer Ghalibaf, acknowledged that the impact of further sanctions could indeed be devastating.
"We must make plans to deal with the unjust sanctions so that we can overcome them," he said. "No matter how much military power we have, we won't survive if people are hungry and we don't have financial turnover, economic growth, and national production."
As the US imposes its own blockade on Iran's oil exports, Bessent called on China to "get with the program." China buys about 80% of the oil exported from Iran, and Bessent emphasized that half of China's energy comes from the Persian Gulf.
But Lin Jian, a spokesperson for China's Ministry of Foreign Affairs, said during a press conference on Friday that China would not cooperate with efforts to isolate Iran.
"China believes that military means, sanctions, and pressure tactics are not the solution. On the contrary, they will only lead to escalation that serves no one’s interests. We call for efforts to solve disputes through dialogue and negotiation," Lin told an Iranian government broadcaster.
Asked about the potential effects on China's energy imports from Iran, he reiterated, "China opposes illicit unilateral sanctions that lack basis in international law and UN Security Council mandate."
The question now is whether Trump will make good on his administration's threats and retaliate against China. It's likely easier said than done, as an economic war with the US's third-largest trading partner could further exacerbate the economic turmoil Trump is seeking to ameliorate before the midterm elections in November.
Danny Citrinowicz, a senior researcher at Israel's Institute for National Security Studies, suggested that China would be unlikely to surrender easily in that fight.
"China has a strong interest in preserving Iran under the Islamic Republic and maintaining Tehran’s strategic relationship, and growing dependence, on Beijing," he wrote on social media. "Any economic strategy that assumes China will eventually fall in line with Washington risks being built on a fundamentally flawed premise."
Shipping traffic through the Strait of Hormuz is still far below prewar levels, with the daily number of ships passing through in the single digits, according to Reuters.
Crude oil prices are still 30% higher than at the start of the war, while US gas prices are still up by more than a dollar per gallon.
But Trump, seemingly unwilling to admit that his campaign there has been anything less than successful, is continuing to claim that the strait is wide open thanks to US military action.
As Gregory Brew, a senior analyst on Iran and oil policy at the Eurasia Group, explained, this has left the administration's messaging on why exactly it is now pivoting to ruthless economic warfare appear like disjointed doublespeak.
"Bessent and others cannot say what this policy is meant to achieve—reopening the strait—because in the admin's telling, the strait is already open," Brew said. "As a result, this return to maximum pressure feels oddly devoid of purpose. The US is inflicting economic pain, felt mostly by Iran's people, rather than its rulers, for no clear reason."
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