The United States is preparing to impose a new round of economic sanctions on Iran, describing the measures as an unprecedented financial offensive targeting countries and businesses that continue to engage with Tehran.
Iran, meanwhile, has warned that it could halt all oil exports from the Gulf if Washington continues what it described as an economic war against the country.
US Treasury Secretary Scott Bessent is scheduled to hold a press conference on Monday, where he is expected to outline the new measures. He had earlier described the planned action as the “single greatest financial offensive” ever launched against an adversary.
The latest escalation comes despite the absence of direct military strikes between the United States and Iran in recent weeks. The two sides have also yet to resume meaningful negotiations aimed at ending the six-month-old conflict.
Thousands of people, mainly in Iran and Lebanon, have been killed since US and Israeli forces began strikes on February 28. The attacks severely weakened Iran’s conventional military capabilities and caused significant damage to its economy, while also killing Iranian Supreme Leader Ayatollah Ali Khamenei.
Despite the military losses, Iran is believed to retain missile and drone capabilities that could be used against Gulf states and oil tankers travelling through the Strait of Hormuz. Disruptions in the strategic waterway have already brought shipping activity close to a standstill and contributed to pressure on global fuel prices.
Bessent did not reveal the details of the planned sanctions but warned countries that continue to support Iran’s economy and financial system that they could face consequences. He specifically criticised nations he said were adopting a policy of appeasement towards Tehran.
Iran has been preparing for the new sanctions, with officials issuing increasingly strong warnings about possible retaliation.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said on Sunday that Tehran could take action against Gulf oil supplies if the economic pressure continued.
He warned that Iran could prevent oil from being exported through the Strait of Hormuz or elsewhere in the Persian Gulf, while also saying Tehran would regard any country supporting Washington’s economic campaign as taking an act of war against Iran.
Bessent had previously urged China to cooperate with the US, pointing out that the country has historically sourced around half of its oil imports from the Gulf. However, a spokesperson for the Chinese embassy in Washington said sanctions and pressure would not help resolve the dispute and called for diplomacy instead.
Iran’s economy was already struggling under years of international sanctions before the latest US and Israeli military campaign caused further damage to infrastructure and disrupted trade and production.
Iranian officials have also warned that additional economic pressure could worsen living conditions, fuel renewed unrest and further undermine public confidence in the Islamic Republic.
The country entered the conflict facing high inflation, a weakened currency, energy shortages, international sanctions and longstanding economic weaknesses. It must now also deal with damaged infrastructure, disrupted trade, lost production and the enormous cost of reconstruction.
With direct negotiations between Washington and Tehran stalled since their last talks in Switzerland in June, countries including Qatar, Pakistan and Turkey have attempted to facilitate diplomatic efforts.
Iran said Pakistan’s army chief, Asim Munir, is due to visit Tehran on Monday as part of efforts to restore peace and security in the region. A Pakistani government source said the visit would include discussions on recent developments, including Washington’s threat of further sanctions.
The conflict has already caused widespread casualties and displacement, with US and Israeli strikes on Iran, along with Israeli attacks on Lebanon, killing thousands and forcing millions from their homes. The United States has reported 18 military personnel killed and more than 750 wounded.
