EU joins US-led ‘Economic Outcast’ campaign against Iran

The European Union has formally joined a US-led campaign aimed at intensifying economic pressure on Iran, US Treasury Secretary Scott Bessent said, as Washington seeks to further restrict Tehran’s access to the global financial system.

Bessent announced the EU’s participation in a post on X, welcoming what he described as the bloc’s strong and early support for the campaign, dubbed “Operation Economic Outcast”.

He said the United States and its allies were working to prevent Iran from using the international financial system to support its nuclear programme, weapons production and affiliated armed groups.

Washington will continue increasing pressure until Iran’s remaining financial channels to the international economy are closed, Bessent said.

The United States launched Operation Economic Outcast on August 24, targeting revenue streams linked to Iran’s oil exports, financial transactions and shipping activities. Washington has since imposed sanctions on individuals, companies and vessels connected to Iran and warned foreign entities involved in business or financial dealings with Tehran that they could also face US sanctions.

The campaign is expected to cover a range of sectors, including banking, oil trading, shipping, gold, technology and digital assets.

The EU had previously signalled support for additional economic measures against Iran, with the European Commission saying further pressure could be used to push Tehran to end destabilising activities and engage seriously in peace talks. At the same time, the bloc has stressed the importance of diplomatic efforts, de-escalation and regional stability.

Bessent has also expressed confidence that increased US pressure could trigger a major economic crisis in Iran within weeks or months. Western governments, however, have continued to emphasise that diplomatic channels should remain open alongside economic pressure.