ERBIL, Kurdistan Region - The European Union has joined the United States' Operation Economic Outcast against Iran, Washington's treasury secretary confirmed on Friday, as the bloc also vowed to "maintain pressure" on Tehran to de-escalate regional tensions and normalize shipping via the Strait of Hormuz, while affirming support for continued diplomatic engagement to achieve that end.
"The European Union has officially joined Operation Economic Outcast and we appreciate their strong and early stance," Treasury Secretary Scott Bessent said in a statement on X, adding that Washington "stands firm with our allies in ensuring the murderous Iranian regime cannot exploit the global financial system to fund its nuclear ambitions, weapons programs, and terror proxies."
"The world is sending a clear message to the Iranian regime: We will not stop until every remaining financial lifeline has been severed," Bessent stressed.
For its part, the EU said in a statement that it had adopted "extensive sanctions" to prevent Tehran from "exploiting the global economy and financial system to sustain its hostile actions and undermine international security," vowing readiness to "take further measures" to "safeguard its security and interests, including freedom of navigation through the Strait of Hormuz."
"The EU will continue to work closely with the United States and other G7 and international partners to maintain pressure on Iran and contribute to de-escalation and regional stability," the statement added.
The US in late August enacted a sweeping sanctions package dubbed Operation Economic Outcast, designed to aggressively curtail Iran's military capabilities and primary revenue streams.
State Department Spokesperson Tommy Pigott said the package specifically targets "Iranian military officials responsible for procuring weapons and directing attacks against US servicemembers and regional partners, Iran-based entities that gathered intelligence for targeting US forces and allies, and a procurement network supplying Iran's military and missile programs."
The measures also target what Washington describes as a "regime-directed cyber group" responsible for "extensive intrusions into U.S. critical infrastructure," as well as a network of "shippers and brokers moving Iranian petroleum and petrochemical products through the United Arab Emirates, China, Singapore, and Europe" to fund the IRGC's Quds Force and "other regime elements."
Operation Economic Outcast came after President Donald Trump earlier this month vowed to launch "the most crushing economic operation ever taken against any country" against Iran, describing the move as "economic warfare and isolation on an unprecedented scale."
In a Truth Social post, he warned that "any country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face tremendous economic consequences," adding that "oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies - it all needs to stop now."
The economic escalation followed the US mid-April launch of the Economic Fury campaign - the financial counterpart to Operation Epic Fury, a six-week joint US-Israeli military campaign that began in late February and saw Washington and Tel Aviv strike thousands of targets across Iran.
Tehran responded with drone and missile strikes across the region, targeting alleged US assets - particularly in Gulf Arab states - as well as Israel.
A preliminary ceasefire mediated by Pakistan followed in early April, with the Islamabad Memorandum of Understanding signed in mid-June formalizing a halt to hostilities on all fronts.
However, the agreement has since been tested by several rounds of strikes and counterstrikes, the latest of which began on Sunday and stretched through Thursday.
For its part, the EU on Friday expressed support for "continued diplomatic efforts," deeming them "necessary to reach a peace settlement, restore regional stability and ensure full freedom of navigation and safe transit" through Hormuz.
"The EU welcomes efforts at ensuring that Iran ceases its destabilising activities and engages in peace negotiations with good faith, also through additional economic pressure, including through the US-led Operation Economic Outcast," it said.
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