The Donald Trump administration sanctioned 27 Iranian airlines and nine foreign entities on Tuesday, expanding Operation Economic Outcast to target companies aiding Mahan Air in acquiring U.S.-origin aircraft.

Treasury Secretary Scott Bessent stated the action aims to sever financial lifelines to the Iranian regime. The Office of Foreign Assets Control (OFAC) designated 36 targets in total and suspended three Iran-related aviation authorizations, including permissions for overflights.

Mahan Air Intermediaries Targeted

Treasury alleged that Mahan Air received at least three Boeing 777 aircraft this summer through a covert routing process. Retired jets were reportedly routed through the United Arab Emirates and Oman before reaching Iran.

UAE-based ECT Aviation Support and Turkey-based Sky Phoenix allegedly acted as intermediaries in these transactions. Washington first sanctioned Mahan Air in 2011 for supporting the Islamic Revolutionary Guard Corps-Quds Force.

Global Cargo and Sales Agents Hit

The sanctions extended to cargo and sales agents operating in Turkey, Malaysia, and Kazakhstan. Treasury identified specific roles for these entities:

• Turkey-based S Sistem coordinated shipments including drone components and industrial equipment.
• Malaysia-based Icargo handled U.S.-origin parts for Mahan Air.

Operation Economic Outcast Expands

This crackdown builds on the August 24 launch of Operation Economic Outcast, which Bessent described as an "economic D-Day." The campaign initially targeted nearly 60 Iran-linked entities, individuals, and vessels.

The operation has since widened to include banks and shadow-finance networks. Treasury warned that foreign firms providing aircraft transfers, cargo services, or sales-agent support to sanctioned airlines risk being cut off from the global financial system.

What the Numbers Show

The designation of 36 targets represents a significant broadening of the initial 60-entity campaign launched on August 24. The focus has shifted from general financial networks to specific operational enablers in the aviation sector, with nearly half of the new targets (9 out of 36) being foreign intermediaries rather than direct Iranian state actors.

Bitcoin rallied roughly 23% to above $77,000 this week, its best performance since 2023, while the U.S. Treasury intervened to stabilize long-end bond yields. The crypto surge coincided with a rare market move by authorities and mixed corporate earnings.

Treasury Intervention Fails to Stick

Treasury Secretary Scott Bessent announced the department would at least double its buybacks of 10- to 30-year debt after the 30-year yield hit a 19-year high of 5.27%. The decision followed concerns over the $40 trillion national debt and a fiscal 2026 deficit tracking above $1.8 trillion.

Long-end yields collapsed initially. The 30-year dropped nine basis points and the 10-year fell 5.7 basis points. The relief lasted less than 48 hours. By Friday, the 30-year yield returned to 5.25%, near pre-announcement levels. JPMorgan described the move as a band-aid without underlying fiscal consolidation. Evercore ISI flagged the risk of a slippery slope if officials attempt to defend specific yield levels.

Bitcoin Rides Regulatory Tailwind

Bitcoin surged from around $63,000 on Monday to above $77,000 by Friday morning. President Donald Trump’s push for Congress to pass the Clarity Act added regulatory optimism. Additionally, $2.7 billion in bearish crypto bets were forcibly closed out. This record short squeeze mechanically accelerated the price movement.

Coinbase Global Inc. rose 26% as the highest-liquidity crypto proxy on U.S. exchanges benefited from Bitcoin’s weekly surge and mounting optimism around the Clarity Act passage.

Walmart Falls Despite Beat

Walmart Inc. shares fell 9.2% to $103.84, wiping out roughly $90 billion in market cap, despite beating estimates. Q2 revenue reached $187.9 billion against a consensus of $186.8 billion. Adjusted EPS was $0.81 versus an estimate of $0.74.

Global e-commerce grew 23%, advertising grew 38%, and marketplace revenue expanded 52%. However, a one-off $2.9 billion tariff refund inflated the print. Underlying U.S. comparable sales grew just 2.6%. Q3 EPS guidance of $0.62-$0.64 landed below the $0.68 consensus.

Walmart raised full-year FY27 guidance. Sales growth is now expected at 4-5% from 3.5-4.5%. Operating income guidance increased to 7-8.5%. EPS guidance stands at $2.80-$2.87.

Moderna Hits Record Rally

Moderna Inc. delivered the biggest one-day rally in its history, rising 177% on Wednesday alone. The stock gained 134% for the week before giving back 20% on Thursday profit-taking and rebounding 11.5% on Friday. Short sellers absorbed roughly $5.5 billion in losses.

The rally followed positive Phase 3 trial results for intismeran autogene, a personalized mRNA melanoma vaccine developed with Merck. The therapy hit both primary and secondary endpoints in the INTerpath-001 trial involving 1,137 patients with stage IIB-IV melanoma. It marked the first successful late-stage readout for any mRNA cancer therapy. Bank of America upgraded the stock to Neutral and raised its price target from $40 to $170.

Economic Data Improves

The S&P Global U.S. Flash Composite PMI jumped to 56.0 in August from 54.5 in July. This marks the fastest pace of business activity growth since April 2022. Services activity surged to a 20-month high of 56.8. This offset a slowdown in manufacturing output, which fell to 51.9, a 13-month low.

S&P Global chief economist Chris Williamson stated that U.S. business is booming. The survey points to Q3 GDP growth approaching 3.0%, well above Q2’s 1.5% pace.

Estee Lauder Beats Estimates

The Estée Lauder Companies Inc. rose 17% after Q4 revenue of $3.63 billion beat the $3.54 billion consensus. This represented a 6.5% year-over-year increase. Adjusted EPS of $0.39 topped the $0.32 estimate.

Management raised FY27 adjusted operating margin guidance to 12.7-13.5% from 11.2% in FY26. FY27 EPS guidance of $3.10-$3.35 implies 24-34% growth. Fragrance sales grew 10% organically for the year. Mainland China accelerated 12% in Q4.

What the Numbers Show

The divergence between Walmart’s headline earnings beat and its share price decline highlights investor sensitivity to underlying operational metrics. While global e-commerce and marketplace revenues grew significantly at 23% and 52% respectively, the reliance on a one-off $2.9 billion tariff refund to drive the EPS beat obscured weaker underlying U.S. comparable sales growth of just 2.6%. This suggests that without exceptional items, core domestic demand remains modest.