Treasury Secretary Scott Bessent stated on Monday that anyone who launders money for Iran will be removed from the U.S. dollar system. The administration has not yet imposed the promised sanctions, planning instead to first send individual countries deadlines to shut down identified activity.
The Treasury campaign, designated as Operation Economic Outcast, spans five sectors: digital assets, technology, gold, aviation, and shipping. The single-page determination was signed by OFAC Director Bradley T. Smith and took effect the same day. While no specific institutions were designated under the new sectors on Monday, the action marks the first time any country's crypto sector has been officially designated.
Cryptocurrency actions also appeared elsewhere in the Treasury's announcements. Officials named Ivan Obukhov, a UAE-based broker for Iran's shadow fleet of tankers, who has reportedly processed over $100 million in cryptocurrency payments since 2023 to pay for Revolutionary Guard oil sales. This follows previous pressure involving stablecoins, with Tether's freezing mechanism locking close to $475 million in Central Bank of Iran stablecoins over the past year.
Financial markets reacted across asset classes following the announcement. Brent crude fell to $90.44, and West Texas Intermediate dropped roughly 2% to $85.76. Conversely, spot gold reached $4,653.23, trading near a three-month high, while Bitcoin rose 1.9% to trade near $78,676. Iran's rial also fell to a record low near 2,020,000 to the dollar.
Despite the blunt warning from Bessent, historical precedent for barring foreign banks from U.S. correspondent accounts remains limited. The Treasury's public list currently features only one institution, Bank of Kunlun, which was cut off in 2012, alongside Bank of Dandong, which was barred in 2017 regarding North Korea. None of China's four biggest lenders have been designated, though China continues to take approximately 90% of Iran's oil exports according to Treasury estimates.
When asked if Chinese lenders would be spared, Bessent declined to offer an exemption, stating to CNBC that entities facilitating transactions to turn Iranian oil into money will be targeted. In response, Beijing's Foreign Ministry spokesperson Lin Jian stated that sanctions only escalate tensions, while Iran's Economy Minister Ali Madanizadeh told state television that the country is fully prepared for a new U.S. economic campaign.
