Treasury Secretary Scott Bessent said Thursday that the European Union has formally joined the U.S.-led sanctions campaign against Iran. He described the move as a signal that the world will not stop until every remaining financial lifeline is severed.

EU Joins Operation Economic Outcast

Bessent stated that the European Union has officially joined "Operation Economic Outcast," thanking the bloc for its "strong and early stance." He emphasized that the U.S. and its allies remain united in preventing Iran’s regime from exploiting the global financial system to fund its nuclear program, weapons, and terror proxies.

The EU welcomed efforts to ensure Iran ceases destabilizing activities. It stated it would continue working with the U.S. and other G7 partners to maintain pressure on Iran and contribute to de-escalation and regional stability. The bloc added it remains ready to take further measures where necessary, including protecting freedom of navigation through the Strait of Hormuz.

Escalating Military Tensions

U.S. forces launched a broader wave of strikes on Iranian targets on Sept. 1 in retaliation for earlier Iranian attacks on U.S. assets in the Gulf. Iran responded with missile and drone attacks on Kuwait on Thursday. This occurred a day after President Donald Trump said renewed hostilities in the Middle East would not last "too long."

Bessent told reporters at the G20 finance ministers’ meeting on Monday that Iran’s economy could unravel "within weeks or months." He noted the goal is to force the regime "to come to its senses." The Wall Street Journal reported on Wednesday that Trump is privately considering declaring the Iran war over, believing continued economic pressure alone could force Tehran to dismantle its nuclear program or collapse the regime.

China’s Role Under Scrutiny

China accounted for more than 80% of Iran’s shipped oil in 2025, according to Kpler data. This makes China central to Tehran’s remaining export revenue. Last month, Bessent said "no one is above the reach of U.S. sanctions" when asked whether Chinese institutions could face penalties. He added that "all options are on the table" regarding sanctions tied to China’s Iranian oil purchases.

China’s President Xi Jinping is set to visit the U.S. on Sept. 24.

A US official confirmed on Thursday that no military facilities in the Middle East housing American personnel were affected by Iran's overnight attacks. This statement directly counters Tehran's earlier claims of striking US forces in Kuwait and the United Arab Emirates.

Attack claims and regional implications

Iran had asserted it carried out attacks on US military installations across two Gulf states on Thursday. The UAE and Kuwait both host significant American military presence, making the alleged strikes a notable development in the broader geopolitical landscape of the Middle East.

The new information from the US official provides a critical update to the initial reports. The official stated that despite Iran's assertions, no facilities were impacted. This clarification aims to de-escalate fears of a direct military exchange affecting US assets in the region.

Context and triggers

Iran's claimed attacks came in response to American bombings the previous day. Those strikes killed at least 18 people, including four civilians at a wedding. The retaliation narrative cited by Tehran highlights the escalating cycle of violence in the region.

No further operational details, casualty figures from the alleged Iranian strikes, or independent verification of the attacks were provided beyond the US official's denial. The nature, scale, and method of the alleged strikes remain unspecified based on the source data.

Key details at a glance

The development, if the US assessment is accurate, indicates that Iran's retaliatory measures did not achieve their stated objective of damaging US infrastructure. The international community's response and any official statements from the US, UAE, or Kuwait governments regarding the specific mechanics of the attack were not included in the available source information.