US Treasury Secretary Scott Bessent claimed on Friday that the EU had “officially joined” the sanctions push against Iran; however, the bloc merely welcomed the move without formally committing to the sanctions, according to a report.
Bessent even went on as far as thanking the EU for rapidly joining in on the US operation targeting the Iranian economy.
“We appreciate their strong and early stance,” the US Treasury Secretary wrote, framing the development as proof that international pressure on Iran is mounting.
However, the Euronews clarified that the European Commission statement published on August 31 and cited by Bessent does not specify that the EU bloc “officially joined” the US Treasury operation targeting Iran’s economy.
The statement specifically welcomes the US campaign without formally committing the EU to it, it said.
The EU statement says the bloc “remains ready to take further measures, where necessary, to safeguard its security and interests, including freedom of navigation through the Strait of Hormuz.”
It adds that the EU bloc welcomes efforts to ensure “peace negotiations with good faith, also through additional economic pressure, including through the US-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 US 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.”
An EU spokesperson, asked by Euronews to comment on the issue during the European Commission’s midday press briefing on Friday, referred to the same statement from Monday and did not clarify further.
Launched in late August, 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 US Treasury designated close to 60 companies, individuals and vessels at the outset and has signaled fresh measures weekly, starting with banks.
European companies involved in trading with Iran could be tangled in the US sanctions.
However, the report highlighted that the EU’s Blocking Statute bars European companies from complying with US sanctions on Iran without permission from the European Commission.
“‘Officially joining’ the sanctions effort 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.
