US sanctions on Iran face limits after decades of penalties

The United States unveiled Operation Economic Outcast this week, a new sanctions campaign targeting over 60 Iranian entities, but analysts say decades of existing penalties limit its potential impact. The measures include closing all branches of Iran's Bank Melli and threatening sanctions on countries dealing with Tehran. Treasury Secretary Scott Bessent warned that entities facilitating Iranian transactions will be targeted, but stopped short of sanctioning Chinese banks, citing concerns about disrupting the global financial system. Experts note China's monopoly on rare earth minerals, critical for US industries, makes Beijing a risky target for secondary sanctions. Research suggests sanctions have sometimes backfired, boosting support for Iran's regime rather than weakening it. Analysts compare the strategy to Washington's six-decade campaign against Cuba, while warning that overusing dollar-based sanctions could push countries toward alternative financial systems.