Bessent threatens Iran sanctions as markets await a major bank target

Treasury Secretary Scott Bessent threatened to remove entities that facilitate money laundering for Iran from the U.S. dollar system. The campaign, called Operation Economic Outcast, covers digital assets, technology, gold, aviation and shipping. OFAC Director Bradley T. Smith signed the single-page determination at 9:25 a.m. Eastern, and the determination took effect the same day. The promised sanctions have not been imposed. Washington will first give individual countries deadlines to end identified activity. Any person operating in the five sectors can be blocked regardless of nationality or location. No firm was designated under the new sectors on Monday. The determination marked the first designation of a country's crypto sector under Executive Order 13902. The order had previously been used for financial services in 2020 and petroleum in 2024. Treasury also named UAE-based broker Ivan Obukhov in a separate action. Treasury's release said Obukhov processed more than $100 million in cryptocurrency payments for Iran's shadow fleet since 2023. The payments funded Revolutionary Guard oil sales, according to the release. Tether's kill switch has frozen close to $475 million in Central Bank of Iran stablecoins since 2023. Brent crude fell to $90.44. West Texas Intermediate fell about 2% to $85.76. Spot gold reached $4,653.23, near its highest level in three months. Bitcoin traded near $78,676, up 1.9% on the day. Iran's rial reached a record low near 2,020,000 per dollar. Treasury's public list of foreign banks barred from U.S. correspondent accounts includes Bank of Kunlun, which was cut off in 2012. Bank of Dandong was barred in 2017 over North Korea. None of China's four largest lenders has been designated. Washington has targeted five Chinese refineries, ports and shipping firms since March 2025, but no Chinese bank. Treasury estimates that China takes about 90% of Iran's oil exports. Bessent said the United States would target Chinese lenders if they facilitate transactions in the Iranian oil ecosystem. Chinese Foreign Ministry spokesperson Lin Jian said sanctions would escalate tensions. President Xi Jinping is due in Washington in late September. Iran said it is fully prepared for a new U.S. economic campaign.