President Donald Trump announced last week that he would subject Iran to unprecedented economic pressure through his Operation Economic Outcast sanctions, aiming to collapse Iran's economy as the rial hits a record 2 million to the dollar.

Critics have interpreted this shift as an admission that the earlier military campaign, Operation Epic Fury, had failed. However, the policy aligns with Trump’s first-term approach and is considered to have a greater chance of success due to Epic Fury’s military achievements.

Between 2019 and 2021, Trump directed the Maximum Pressure campaign against Iran, the most aggressive sanctions program in modern history, designed to prevent Iran from acquiring nuclear weapons by cutting off economic resources.

Following the announcement, Treasury Secretary Scott Bessent introduced the so-called "D-Day" sanctions under Operation Economic Outcast, which are expected to increase pressure on Iran to an intolerable level, giving Trump leverage to enforce a nuclear deal with Tehran.

Economic indicators in Iran have deteriorated significantly: inflation rose to 50% in the lead-up to the Twelve-Day War last year and worsened thereafter. Prior to Operation Epic Fury, inflation was accelerating at 50%, the rial was approximately 1.87 million to the dollar, one major bank had collapsed, five others faced difficulties, nationwide protests had been brutally suppressed but unresolved, and foreign exchange channels were narrowing.

Plumes of smoke were reported following explosions in Tehran on March 2, 2026, highlighting ongoing tensions.

The president immediately reimposed Maximum Pressure sanctions, which took rapid effect due to unresolved structural economic weaknesses from his first term.

Sources