US discusses economic pressure on Iran with Bahrain

US Treasury Secretary Scott Bessent on Tuesday discussed Operation Economic Outcast to increase economic pressure on Iran with Bahrain’s Minister of Finance and National Economy Salman bin Khalifa Al Khalifa.

During the meeting, Bessent stressed that Iran must not be allowed to threaten international trade or use the Strait of Hormuz as a tool to pressure the global economy.

He also emphasised the need to maintain sustained financial pressure on Iran.

The two officials agreed to continue coordination between the US, Bahrain, and the Gulf states to combat illicit financial flows and strengthen economic security.

“Secretary Bessent also welcomed Bahrain’s long-standing partnership and its continued commitment to safeguarding the integrity of the international financial system,” the US Treasury Department said.

A day earlier, Bessent said new US sectoral sanctions target five key channels of Iran’s foreign financing, including digital assets, technology, gold trading, aviation, and maritime transport.

Meanwhile, Iran’s Foreign Ministry said on Monday that Tehran would use all its capabilities to confront Washington’s economic pressure. Iran considers the only option for the US is to engage in dialogue with the Iranian people based on mutual respect.

The US and Israel began striking a number of targets in Iran on 28 February, which was subsequently met with Iranian retaliation. In mid-June, Tehran and Washington signed a memorandum of understanding to halt hostilities.

However, the two sides resumed exchanging attacks shortly after the agreement. The conflict then continued without active hostilities, while Washington opted to increase economic pressure to push for a resolution to the conflict.

The pressure is aimed at creating financial hardship for Tehran and encouraging Iran to end the conflict through economic means.