BRUSSELS (Dispatches) – European officials have distanced themselves from U.S. Treasury Secretary Scott Bessent’s claim that the European Union has “officially joined” the U.S.-led economic terrorism against Iran, with Brussels clarifying that it has not formally committed to the sanctions campaign. 

In a statement on Friday, Bessent thanked the EU for “rapidly joining” the U.S. Treasury operation targeting the Iranian economy, writing that “we appreciate their strong and early stance” and framing the development as proof that international pressure on Iran is mounting.

However, Euronews reported that the European Commission statement published on August 31 and cited by Bessent does not specify that the EU bloc “officially joined” the U.S. Treasury operation targeting Iran’s economy. The statement specifically welcomes the U.S. campaign without formally committing the EU to it, it said.

The EU statement says the bloc welcomes efforts to ensure “peace negotiations with good faith, also through additional economic pressure, including through the U.S.-led Operation Economic Outcast,” and says it will “continue to work closely with the United States and other G7 and international partners.”

However, nowhere in the EU statement does Brussels say it is joining the U.S. operation against Iran, according to the report. On the contrary, it said, Brussels emphasizes in the EU’s statement that it “believes continued diplomatic efforts are necessary to reach a peace settlement.”

Launched in late August, the US so-called “Operation Economic Outcast” aims to target Iran’s access to digital assets, advanced technology, gold, commercial aviation and shipping, and relies on secondary sanctions, meaning penalties against foreign firms and banks that keep dealing with Iran. 

The U.S. Treasury designated close to 60 companies, individuals and vessels at the outset and has signaled fresh measures weekly, starting with banks.

The report highlighted that the EU’s Blocking Statute bars European companies from complying with U.S. sanctions on Iran without permission from the European Commission. 
“Officially joining” the sanctions regime would likely mean the EU adopting equivalent measures of its own and threatening European companies with European penalties if they continued trading with Iran, according to the report. Brussels has not committed to threatening European companies with EU penalties at the moment, it added.
Such a decision, it said, would require a unanimous vote among EU member states, and one with direct consequences for firms in countries such as Germany, Italy and the Netherlands, which together account for around two-thirds of the bloc’s remaining trade with Iran after years of sanctions.