August 25th, 2026: Iran’s Economic Lifelines Are Being Cut Off & North Korea’s Next Deployment

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**Mike Baker** (0:43)
It's Tuesday, the 25th of August. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. First up, Washington tells the world to choose between America and Iran. As the Iranian regime threatens dozens of tankers in the Strait of Hormuz. Confused? Well, we'll have the details. Later in the show, Ukraine sets its sights on a new target, striking warehouses belonging to Russia's second largest online retailer. Plus, North Korea prepares to send more troops to Russia after already supplying Moscow with more than 15 million artillery rounds. Well, after all, what are friends for? And in today's Back of the Brief, Washington brings Israel and Syria to the negotiating table in an attempt to prevent further conflict. But first, today's PDB Spotlight. The Trump administration has launched a campaign designed to force every country to make a choice, continue doing business with Iran or preserve access to the American economy. Treasury Secretary Scott Besson announced the campaign Monday under the name Operation Economic Outcast. They must have an office somewhere in Washington, DC that is tasked with coming up with these names. Operation Economic Outcast. He said the objective is to sever every remaining economic lifeline available to the regime and impose what he called a, quote, zero leakage approach to Iranian revenue.
The opening round targets more than 60 individuals, companies and vessels accused of helping Iran obtain nuclear and missile technology. Additional sanctions will target digital assets, gold, aviation, shipping and technology, with further moves expected in the coming weeks.
Besant also singled out Bankmeli, that's Iran's largest state-owned bank. He said its foreign branches must close or risk being cut out of the US dollar system. And that's the real power behind the campaign. Washington is not simply telling American companies to stop doing business with Iran. It's warning foreign governments, foreign banks and corporations that they could lose access to the American financial system if they continue providing Tehran with revenue.
In simple terms, they can do business with Iran or they can do business with the US. The administration is telling them they cannot do both. But despite the economic D-Day branding, Monday's announcement was still largely a warning shot. Besant did not identify which major countries and financial institutions will be targeted. He acknowledged that Washington is giving governments time to change their behavior before the hammer falls. Now, the decisive factor, as we've discussed previously on the PDB, will be China. Beijing purchases most of Iran's exported oil, often through small independent refineries, with limited exposure to the US. That trade has helped Tehran survive previous rounds of American sanctions.
Asked whether Washington would target Chinese banks involved in those transactions, Besant would only say that no one is beyond the reach of US sanctions. He added that the administration prefers to handle those conversations through quiet diplomacy.
The pressure may already be producing results elsewhere. The UAE suspended all trade and financial transactions with Iran last week, shortly after President Trump spoke with Emirati leader Sheikh Mohammed bin Zayed. Neither government has confirmed that Trump demanded the suspension, but Besant said the timing was, quote, not a coincidence. Now, that is a major loss for the Iranian regime. Trade between Iran and the Emirates was worth roughly $28 billion in 2024, and the UAE had been Iran's largest source of imported goods.
Meanwhile, conditions inside Iran continue to deteriorate. The real fell Monday to a record low of 2.02 million real to one US dollar. Since the war began, rice prices have increased roughly 60 percent, while beef prices have risen more than 150 percent. The International Monetary Fund expects Iran's economy to shrink by more than 5 percent.
The regime's response now has been to threaten the economic interests of everyone else. A newly created Iranian body called the Persian Gulf Straight Authority has blacklisted 45 tankers for allegedly violating Iran's rules in the Strait of Hormuz. The list includes massive crude oil carriers, liquefied natural gas tankers and vessels connected to major companies in Saudi Arabia and the Emirates. Iran says the ships could be fined, detained or have their cargoes confiscated. Any vessel conducting a ship-to-ship transfer with one of those tankers could also be blacklisted, according to the regime. Tehran has not clearly explained which rules those vessels broke. Iranian officials have previously demanded that ships receive Tehran's permission to cross the Strait and pay Iran for security and other services. So, this is Iran's attempt to create leverage of its own. If the regime can't escape America's blockade and sanctions, it can threaten the shipping, carrying Gulf Energy's exports to the world. But that strategy may be difficult to sustain. The US says tanker traffic through Hormuz is gradually recovering. Energy Secretary Chris Wright says the 7-day average of oil leaving the Strait has climbed above 8 million barrels per day, with the US. Navy helping vessels make the passage. And every threat against Saudi, Emirati or international shipping risk pushing those governments closer to Washington.