OFAC Launches “Operation Economic Outcast,” Significantly Expands Iran-Related Sanctions Risk

Yesterday, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced the launch of “Operation Economic Outcast,” an expansion of U.S. sanctions against Iran designed to “sever the economic lifelines that sustain the Iranian regime.” Described as the beginning of a sustained campaign, these new measures target key sectors of the Iranian economy and enhance secondary sanctions. As part of this effort, the Office of Foreign Assets Control (OFAC) also sanctioned nearly 60 entities, individuals, and vessels, suspended five general licenses, and issued additional guidance with respect to shipping in the Strait of Hormuz. A summary of these actions, and the potential implications for U.S. and other businesses, is provided below.