The European Union (EU) has joined the United States in stepping up economic pressure on Iran, giving a major boost to US President Donald Trump’s campaign to isolate Tehran. 

US Treasury Secretary Scott Bessent said the EU has “officially joined” the US-led Operation Economic Outcast, signalling stronger coordination between Washington and Brussels as the Iran conflict continues.

The US launched Operation Economic Outcast last month as part of its wider strategy to cut Iran off from key sources of revenue and international financial networks. The campaign has focused on Iran’s oil trade, shipping, aviation, financial channels and other economic links. Washington has also warned countries and companies against helping Tehran bypass the restrictions.

The latest move by the EU could make the pressure more effective because European support gives the campaign a wider international reach. Bessent welcomed what he described as the bloc’s strong and early stance against Iran, while the US continues to push other countries to reduce their economic ties with Tehran.

The pressure is already having a visible impact on Iran’s economy. Reuters reported that US sanctions and the blockade have sharply reduced Iran’s oil exports, with crude loadings falling from around 1.7 million barrels a day to roughly 260,000 barrels a day. Iran’s currency has also weakened sharply, while inflation has climbed close to 70%.

Trump’s administration is using economic measures alongside military and diplomatic pressure in an attempt to force Tehran to change its position. However, Iran has so far shown little willingness to back down, leaving the region facing continued uncertainty over the conflict, energy supplies and global trade.

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