Department of the Treasury Announces Further Sanctions on Iran

On August 24, 2026, President Donald Trump and the Department of the Treasury announced implementation of “Operation Economic Outcast,” marking further efforts remove the Islamic Republic of Iran “and its enablers” from all available financial resources supporting the Iranian regime.

According to a press release, the Treasury Department “has mapped the networks, facilitators, and financial channels that Iran uses to smuggle oil, evade sanctions, and fund terror. Working with our partners across the U.S. government, Treasury will be uncompromising in targeting any source of the regime’s illicit revenue.”  The press release notes that “the Departments of Treasury, State, and War are engaging counterparts around the world to make clear that the United States expects immediate action. Every country will be given a defined timeline to shut down the Iran-related activity we have identified. If they fail to act, Treasury will act.”

In undertaking these efforts to further isolate Iran, the Treasury Department has taken the following immediate actions:

• Expanded the categories of Iran-related conduct that may be subject to “secondary sanctions” in the future and targeting parties that facilitate the Iranian regime. Accordingly, Treasury has issued a Determination imposing sanctions on any person determined to operate in the (i) digital assets, (ii) technology, (iii) gold, (iv) aviation, and (v) shipping sectors of the Iranian economy.
• The Office of Foreign Assets Control (OFAC) has sanctioned nearly 60 entities, individuals, and vessels in multiple jurisdictions and involving nuclear, missile, cyber and oil networks.  For more details and identifying information on each designated entity, person or vessel, see here.  As a result of this action, all property and interests in property of these designated or blocked persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC.  In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
• OFAC has suspended several general licenses under the Iranian Transactions and Sanctions Regulations under 31 C.F.R. part 560 that previously authorized certain remittance payments to Iran and Iranian access to the U.S. cultural and academic system.  Including suspending:
  • Iran General License F – Related to Certain Services in Support of Professional and Amateur Sports Activities and Exchanges Involving the United States and Iran.
  • Iran General License G – Related to Academic Exchanges and the Exportation or Importation of Certain Educational Services.

• OFAC has issued updated guidance on the sanctions risks Iranian demands related to shipping in the Strait of Hormuz.