On Monday, August 25th, 2026, the United States announced a new wave of sanctions against Iran and numerous global entities doing business with the country. Officials have termed this move an "economic D-Day" and officially named it "Operation Economic Outcast," aiming to compel Tehran to negotiate an end to the ongoing war.

The sanctions follow repeated demands from US President Donald Trump for Iran to relinquish claims over the Strait of Hormuz and to return to negotiations regarding its nuclear program. The Pentagon has also redeployed naval assets, sending the USS George Washington from Japan to the Gulf to relieve the USS Abraham Lincoln, whose crew has been at sea longer than planned due to the conflict.

Experts express skepticism about the effectiveness of this economic escalation. Negar Mortazavi, a senior fellow at the US-based Center for International Policy, told Al Jazeera, "The United States is returning to economic pressure because military force has failed to deliver the quick victory it expected. The ‘economic D-Day’ declaration underscores the war’s failure so far to force Iran’s surrender or achieve Washington’s political objectives."

Jamal Abdi, head of the National Iranian American Council (NIAC), commented, "I think it became clear the US is running out of runway on this, so the administration pivoted to what it knows best, or has perceived as effective in the past, which is these economic tools. Really, it’s a way for the administration to scale back to where it was before this war but present it as this new enhanced pressure policy."

The conflict has also impacted global consumers, with Tehran's restrictions on traffic through the Strait of Hormuz causing petrol prices in the US to rise by about 40 percent compared to pre-war levels. During Trump's first term in 2019, similar economic pressures led to attacks by Iran-backed Houthi forces on tankers in the Gulf and oilfields in Saudi Arabia.

Public opinion in the US reflects growing dissatisfaction, with only 31 percent of Americans supporting the war and 33 percent approving of President Trump's performance, according to a Reuters/Ipsos poll.

Sources