Experts urge US to expand economic pressure campaign against Iran

Two senior analysts from the Washington Institute for Near East Policy published a report this week arguing that the United States has not fully utilized the power of its economic strategy against Iran. Michael Jacobson and Matthew Levitt stated that Operation Economic Outcast, the current campaign designed to sever the economic lifelines supporting the Iranian government, needs deeper cooperation with foreign partners to achieve its goals.

The report, authored by Jacobson, the Mark and Wayne Levy Senior Fellow, and Levitt, the Fromer-Wexler Senior Fellow, suggests that tighter alignment with allies on sanctions would strengthen Washington’s position. This recommendation comes alongside the ongoing blockade of the Strait of Hormuz, which aims to constrain Tehran’s ability to move goods and money.

The authors criticized the US government for relying too heavily on limited diplomatic actions rather than a comprehensive international approach. They noted that recent diplomatic wins demonstrate the value of working with other nations. On October 12, the United States joined 29 other governments in a statement accusing Iran of plotting to destroy US air assets at RAF Fairford in the United Kingdom. This followed a joint declaration from the US and eight Western Hemisphere nations one week earlier that condemned Iranian terrorist activities. In June, more than 20 governments, led by the US State Department, accused Iran of orchestrating attacks across Europe, North America, and Australia.

Jacobson and Levitt observed that some governments were initially hesitant to join these condemnations due to fears of Iranian retaliation or concerns for their citizens detained in Iran. However, US diplomatic support helped secure their participation. The analysts also highlighted Washington’s role in helping Central and South American countries designate the Islamic Revolutionary Guard Corps, Hezbollah, and Hamas as threats in recent years.

The report argues that these symbolic designations are most effective when backed by material support. To this end, the experts suggest the administration utilize foreign assistance funding to build partner capabilities. Congress has allocated nearly $300 million to the State Department for the current fiscal year to strengthen counterterrorism efforts. While some of these funds are currently directed toward cartel and gang threats in Central America, the authors propose similar support be applied to countering Iranian influence.

Specific proposals include using funds to train and equip Syrian border security forces to intercept smuggling and bulk cash transfers by Iran and Hezbollah. The report also recommends assisting Yemeni Coast Guard officials in disrupting Houthi weapons networks and helping Iraqi financial institutions identify illicit Iranian financing. Additional initiatives would support authorities in West Africa and South America in prosecuting Hezbollah’s financial networks. The analysts contend that these steps are necessary to turn diplomatic support into concrete action against the Iranian regime.