The United States is preparing a major new round of sanctions targeting Iran’s trading partners, while Tehran has warned it could halt all oil exports from the Persian Gulf if what it calls an economic war continues.
CAIRO/WASHINGTON, United States — Washington is set to unveil tougher economic measures against Iran on Monday, with U.S. Treasury Secretary Scott Bessent describing the planned action as the “single greatest financial offensive” ever assembled against an adversary. Iran has responded by threatening to stop oil exports through the Strait of Hormuz and elsewhere in the Persian Gulf.
Key Highlights
- The United States is preparing sanctions aimed at Iran’s trading partners and its wider economic and financial network.
- Iranian official Mohsen Rezaei warned that Tehran could halt all oil exports if the economic pressure continues.
- Restrictions around the Strait of Hormuz have already pushed shipping in the key waterway close to a standstill and affected global fuel prices.
US prepares new Iran sanctions offensive
Bessent is scheduled to hold a press conference at 1 p.m. EDT on Monday to outline the new measures. He has indicated that Washington will also pressure countries that continue engaging with Iran’s economy and financial system.
In an opinion article published in the Financial Times, Bessent warned countries that cooperate with Iran that they should consider the consequences of maintaining those economic relationships.
Iran threatens to stop Gulf oil exports
Tehran has been preparing for the new sanctions with increasingly strong warnings. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said Iran could respond economically by stopping oil exports from the entire Persian Gulf region.
Rezaei also warned that Iran would consider any country participating in or supporting the U.S. economic campaign against Tehran to be engaging in an act of war.
Strait of Hormuz remains a major pressure point
Iran retains missile and drone capabilities that could threaten Gulf neighbours and oil tankers operating near the Strait of Hormuz. Shipping through the strategically important waterway has been severely disrupted, adding pressure to global fuel markets.
The situation has also raised questions about Iran’s nuclear programme. The exact condition of the programme remains unclear, while the United States and Israel have sought to eliminate it.
China urges diplomacy over sanctions
Washington has previously urged China to cooperate with its efforts against Iran, citing Beijing’s historical dependence on Gulf oil supplies. China’s embassy in Washington rejected the idea that sanctions and pressure could resolve the dispute and called instead for diplomacy.
The dispute comes as Iran’s economy faces multiple existing pressures. The country entered the conflict with high inflation, a weakening currency, energy shortages and long-standing sanctions, while damage to infrastructure and disruptions to trade have added further economic strain.
Diplomatic efforts continue amid economic pressure
The United States and Iran have not held meaningful face-to-face talks since discussions in Switzerland in June. Qatar, Pakistan and Turkey have meanwhile attempted to support diplomatic efforts aimed at restoring peace and regional security.
Iran said Pakistan’s army chief, Asim Munir, would visit Tehran on Monday as part of those efforts. A Pakistani government source said the visit would include discussions on recent developments, including Washington’s threatened sanctions.
Economic pressure adds to regional uncertainty
Iranian officials have warned that additional economic punishment could worsen living conditions, fuel renewed unrest and further weaken confidence in the Islamic Republic. The country must also contend with damaged infrastructure, disrupted production and the financial burden of reconstruction.
The broader conflict has already caused thousands of deaths and displaced millions, according to the report. The United States has reported 18 military personnel killed and more than 750 wounded.
With Washington preparing its sanctions package and Tehran threatening to halt Gulf oil exports, the economic confrontation is adding another major source of uncertainty to an already disrupted regional energy market.
Praveen Yadav is the Founder and Editor at The Nation Bulletin. With over 3 years of experience in digital journalism and news reporting, he covers national affairs, governance, and breaking current events with a commitment to factual accuracy and verified reporting.
