The European Union has formally joined the U.S.-led "Operation Economic Outcast" sanctions campaign against Iran, while South Korea weighs sending military assistance to help reopen the Strait of Hormuz. The moves come as the U.S. and Iran trade strikes across the Middle East and Washington pushes allies to back the war on both financial and military fronts.
EU signs on to Operation Economic Outcast
The European Union has formally joined the U.S.-led sanctions campaign against Iran, U.S. Treasury Secretary Scott Bessent said, as Washington presses allies to back its war against Tehran. Bessent praised the bloc for signing on to "Operation Economic Outcast," a campaign aimed at cutting Iran off from the global financial system.
Bessent said in a social media post Thursday evening that he appreciated the bloc's strong and early stance. According to CNBC, Bessent added: “We will not stop until every remaining financial lifeline has been severed”.
Brussels said in an Aug. 31 statement that it supported efforts to stop Iran's destabilizing activities and to resume peace talks, including through the U.S. campaign. The endorsement came as G20 finance ministers and central bank governors met this week in Asheville, North Carolina.
Iran's Foreign Ministry spokesperson, Esmail Baghaei, rejected the EU's move, calling it Washington's economic terrorism. Baghaei said in a post that the bloc had surrendered its sovereignty, its laws and regulations, values and ethics to U.S. coercion.
Pressure builds on banks and trading partners
The Trump administration launched Operation Economic Outcast in late August, targeting Iran's access to digital assets, advanced technology procurement, gold reserves, commercial aviation and shipping. Bessent said countries aiding Tehran should expect to share in the regime's isolation, noting that China bought around 90% of Iran's sanctioned crude exports before the war.
The EU separately maintains its own sanctions regime targeting Iran's nuclear and ballistic missile programs and its military support for Russia. Bessent had signaled ahead of the summit that he intended to press G20 counterparts to cut financial ties with Tehran or face secondary sanctions, and he indicated new secondary sanctions would arrive weekly, with an initial focus on banks that facilitate Iran-related transactions.
Seoul weighs a Hormuz role
South Korea is weighing options including military assistance to help the U.S. reopen the Strait of Hormuz to commercial shipping, Reuters reported Friday, citing the presidential office. The government denied that a decision has already been made, saying details on the issue have yet to be decided.
Several South Korean media outlets reported Thursday that Seoul was preparing to send troops to the Gulf region before year-end and could seek parliamentary approval as soon as this month. The consideration follows Washington's dissatisfaction with Seoul's reluctance to offer military assistance, after the U.S. scaled back an annual joint military drill last month and canceled a landing drill scheduled for September.
Strikes continue as Hormuz traffic stays subdued
Military hostilities in the region intensified in recent days, reviving fears of a broader war. The U.S. military carried out a new wave of strikes this week on military targets in Iran, in retaliation for attacks on ships and American forces in the region, and Iran retaliated by launching missiles on U.S. military bases across the Middle East.
Shipping through the Strait of Hormuz — a choke point for roughly a fifth of global oil flows before the war — remained subdued, with Iran launching periodic strikes on vessels using the southern shipping lane near the Omani coast. The U.S. has maintained a naval blockade in the strait, blocking vessels entering or leaving Iranian ports to stall the country's crude oil shipments. U.S. Central Command said Friday that it has redirected 87 commercial vessels, disabled three and boarded two to ensure total compliance.
Source: CNBC
Trading involves risk.
Risk Disclaimer
