A look at the new U.S. sanctions on Iran and threats against its trading partners

Key Points:

• The U.S. launched "Operation Economic Outcast," a new economic pressure campaign targeting Iran, aiming to enforce tougher sanctions on countries trading with Tehran to avoid military conflict and counter Iran's control over the Strait of Hormuz.
• Iran's economy is under severe strain, with its currency hitting record lows and inflation rising, but Iranian leaders have threatened military retaliation and to block Gulf allies' oil exports.
• The effectiveness of the new sanctions campaign relies heavily on diplomatic engagement with countries like China and the UAE, which remain key economic partners of Iran, especially through oil trade and financial transactions.
• While China still buys about 500,000 barrels of Iranian oil daily—down from 1.5 million—U.S. officials are cautious about imposing sanctions on major Chinese banks due to potential global economic repercussions.
• Experts acknowledge that while the Iranian regime can endure economic pain, sustained and well-enforced sanctions combined with diplomatic pressure could compel Iran to reconsider its stance, as historical precedents suggest.