Why 'Operation Economic Outcast' against Iran is all about RUSSIA and CHINA

All right, thank you. We are watching. market reaction after the Treasury. secretary announces sanctions, very. powerful sanctions on Iran. The Dow. right now off of ties up 60 points, but. also looking at a drop in oil prices, a. pretty significant one down a couple. percent in today's session. Let's bring. in our economic panel, Robert Wolf and. Steve Moore. Welcome to both of you. Thank you for being here. First up, this. is five guys. These are the secondary. sanctions announced by Bessen just. moments ago. Listen.

>> We we are giving everyone the. opportunity the to remedy bad behavior. Why would I want to blow up the global. financial system? We believe that it is. important to level set and give people a. cure period, but they should know that. that will move very quickly and that we. are serious. Secondary sanctions are a. very powerful tool. If people do not. want to meet our expectations, then we. expect and they should expect that they. should will leave the dollar system.

>> So, they're going after Iran's. connections, Steve, all over the world. They want to Iran to face complete. global isolation. From what you just. heard, will this work? >> Well, the markets like it, don't they? At least so far. It's good news that the. oil price fell. when Scott Bessen was talking about. this. Look, I think it can work. It depends a. lot on whether our allies, you know, follow our lead here, but I think they will. And.

listen, I like what Scott Bessen said. You have two options here. Either you're. cooperative, you act like a civilized. nation, or you're going to feel you're. going to be completely isolated. economically, and that's exactly what. Trump and his his team should be saying. right now. >> As always, when sanctions are announced, you ask the question, can they enforce. this? Right, Robert? This is the zero. leakage approach described by Secretary. Bessen a moment ago. >> Treasury has mapped every node, every.

facilitator, and every network that Iran. has used to smuggle oil and evade. sanctions. Beginning today, the actions of Treasury. and other agencies will tighten the. noose and block every potential source. of revenue that funds the IRGC and the. evil Iranian regime. We are enforcing a zero leakage. approach. >> Your reaction, Robert. >> You know, Sandra, although I've been. critical on the approach with this Iran.

war, this I support fully because. um Iran's already been hammered. economically. Inflation's up at 85-90%, but when you start going after secondary. sanctions, you're going after all their. trading partners. You're going after the. way that they can find wiggle room. Um. unfortunately, in 2004, when I was at. UBS, we circumvented secondary sanctions. on Iran, Libya, and Cuba. We were uh we. had to pay a big fine. I didn't become.

president of UBS till 2006, so it's but. before I was running it. But um. listen, you have to make sure there's. zero wiggle room. What I was. what I think um Treasury Secretary. Bessant needs to do better is be clear. to China and Chinese banks, who really. is the the key to all of this working. Um that they are going to keep a a a. tight tight eye on them, and they're. going to make sure that if there's any. um shenanigans going on, that they're. going to pay the price. Cuz really, at.

the end of the day, this is all about. China and Russia. Because Turkey and. Pakistan and the other trading partners, they're not going to do anything against. the US. Okay, but this is all about. Russia and China. I think he has to be. firmer on that. >> Yeah, Steve, that's a good point. Um. this was the moment when Treasury. Secretary Bessant talked about exactly. that and warned any country uh that is. foolish enough to help Iran. Listen. here. enough to help Iran. Listen. >> entity that facilitates money laundering. on behalf of Iran.

will be removed from the US dollar. system. The clock just started ticking. These. measures broaden secondary sanctions. risk for anyone foolish enough to. continue conducting business with this. regime and will accelerate the speed. with which we pursue them. >> So Steve, this wasn't just a warning to. Iran. This was a message to the world. >> Yeah, look, the friend of our enemy is. our enemy and that's what what the.

Secretary Mnuchin is saying here. You. know, Robert is exactly right that one. of the key players here is China. And I. was just looking at these statistics. this morning, Sandra. You know, above 80% of the oil that comes out of. the Persian Gulf and through the Strait. of Hormuz, you know where it goes? It. goes to China, India and Asia. So, my. point the reason I bring that up, Sandra, is it's in China's own economic. interest to get this system resolved so. they can have low energy prices. The.

question but of course. we also know the China government will. do everything they can to try to wreak. havoc. on the Trump administration. >> Got it. I appreciate both of you joining. us on the breaking news that we got from. the Treasury just moments ago. Thank you. both, Steve, Robert. >> Be sure to like and subscribe for all. the Fox News latest on YouTube and catch. full shows streaming now on Fox 1.