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Treasury details new sanctions push and $40 billion reinsurance plan for shipping amid Strait blockade
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Summary
Treasury Secretary Scott Bessent outlined "Operation Economic Fury," described expanded secondary sanctions and freezes targeting IRGC-linked funds, and said a U.S. reinsurance program (via DFC) stands at $40 billion to encourage maritime insurance once the Strait reopens.
Treasury Secretary Scott Bessent said the administration has launched an economic campaign it labeled "Operation Economic Fury," describing steps to block Iranian state payments, freeze accounts linked to the Islamic Revolutionary Guard Corps and apply secondary sanctions to banks and companies that aid Iran.
"We have... pushed out to them the request that we want to freeze more funds of the leadership, of the IRGC," Bessent told reporters, and said that countries buying Iranian oil that hold Iranian funds in their banks may face secondary sanctions if those funds cannot be accounted for.
Bessent characterized the effort as "the financial equivalent of what we saw in the kinetic activities" and said the Treasury is coordinating with partners to trace and freeze suspect funds. He also said a U.S. reinsurance program for ships and tankers, administered through the U.S. International Development Finance Corporation, is "now up to $40,000,000,000" to help normalize insurance pricing once passage through the Strait resumes.
On energy markets, Bessent linked the timing for lower gasoline prices to the reopening of the Strait, saying he was optimistic prices with a "3 in front of us" could return between mid-June and mid-September if navigation normalized and shipping insurance rates fell. He cautioned that shipping and insurance markets must stabilize before private-sector carriers resume normal routes.
When asked whether this phase represented an economic alternative to military action, he said: "Exactly," framing sanctions and financial pressure as a complementary phase of the administration's approach.
Officials emphasized many measures depend on the tactical situation and cooperation from partner countries; Bessent said Treasury has asked allies to be transparent about Iranian funds in their banking systems and warned about secondary sanctions for noncompliance. He cited coordination with private-sector insurers and DFC channels to offer more normalized insurance conditions for shippers.
