US unveils new sanctions targeting Iran's cryptocurrency networks to evade economic restrictions

US Treasury Secretary Scott Bessent has launched a major secondary sanctions campaign, dubbed "Operation Economic Outcast," targeting Iran's digital assets, technology, gold, aviation, and shipping sectors. The measures penalize global entities facilitating Iranian trade, though the US has stopped short of sanctioning major Chinese banks. While the UAE has suspended trade with Iran, Tehran remains defiant, claiming a two-year plan is in place. Meanwhile, Iran's domestic economy faces severe strain, with the rial hitting a record low of 2.02 million to the dollar and food prices soaring 128%.

US secondary sanctions expansion

• ▪The US Treasury Department sanctioned nearly 60 corporations, individuals, and vessels across multiple jurisdictions, including multiple Chinese nationals.
• ▪US Treasury Secretary Scott Bessent warned that any foreign entity facilitating money laundering for Iran will be removed from the US dollar-based financial system.
• ▪US Treasury Secretary Scott Bessent announced an expansion of secondary sanctions on August 24, 2026, targeting international networks facilitating Iranian trade.
• ▪The US Treasury Department issued determinations against five critical Iranian sectors: digital assets, technology, gold, aviation, and shipping.

Iranian cryptocurrency evasion networks

• ▪Iran launched a bitcoin-backed shipping insurance service for Iranian shipping companies in May 2026.
• ▪The US government reported in July 2026 that it had frozen cryptocurrency linked to the Iranian regime, primarily in the form of the Tether stablecoin.
• ▪The US Office of Foreign Assets Control designated and published wallets of Ministry of Intelligence and Security hacking group members Behzad Mesri, Keyvan Fayyaz Ghareh Blagh, and Arman Kahzadian.
• ▪The US Office of Foreign Assets Control placed Iran's digital asset sector under the same sanctions authority used against its oil, banking, and metals industries.

Iran trade isolation strategy

• ▪US President Donald Trump is making phone calls to world leaders with specific requests to cease trading and commercial interactions with the Iranian regime.
• ▪The US government stopped short of targeting major Chinese banks that facilitate Iranian oil trade, despite China being Iran's largest oil customer.
• ▪The United Arab Emirates suspended all trade, commercial exchanges, and financial transactions with Iran in August 2026 ahead of the US sanctions announcement.

Iranian government defiance

• ▪Iranian President Masoud Pezeshkian stated during a meeting with Pakistani Army Chief Asim Munir that US reliance on bullying would only complicate the process.
• ▪Iranian Central Bank Head Abdolnaser Hemmati stated that Iran anticipated difficult conditions and stockpiled foreign currency to secure essential goods and medicine.
• ▪Iranian Economy Minister Ali Madanizadeh dismissed the US sanctions, stating that Iran has a two-year plan to manage and counter the economic measures.

Iran domestic economic crisis

• ▪Iranian oil shipments to China fell to approximately 534,000 barrels per day in August 2026, down from 823,000 barrels per day in July 2026.
• ▪Iranian food prices rose approximately 128% year-on-year in July 2026, according to official data cited by Reuters.
• ▪The Iranian rial fell to a record low of 2.02 million rials to the US dollar on informal currency markets on August 24, 2026.