Operation Economic Outcast Directed At China, Major Escalation Likely

Damir Tokic 14.64K Followers Follow Summary Operation Economic Outcast is designed to economically isolate Iran and force Iran to reopen Hormuz and give up its nuclear program. The secondary sanctions are directly targeting China, but China might not fully comply; it has leverage due to its control of rare earth materials. Iran is likely to retaliate by attempting to trigger an oil price spike and a global inflationary shock. Overall, the situation is likely heading towards a major escalation. Chip Somodevilla/Getty Images News Operation Economic Outcast U.S. Treasury Department Secretary Bessent announced "Operation Economic Outcast" to completely isolate Iran - all countries and entities helping Iran economically will face secondary sanctions. Specifically, Bessent said that all countries helping Iran This article was written by Damir Tokic 14.64K Followers Follow Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.