CAIRO/WASHINGTON: The United States is preparing to impose sweeping new economic sanctions on Iran, describing the measures as one of the most aggressive financial campaigns ever launched against an adversary, while Tehran has warned it could halt all oil exports from the Gulf if the economic pressure continues.
US Treasury Secretary Scott Bessent is expected to outline the new measures at a press conference on Monday, targeting Iran’s trading partners and entities involved in its economy and financial system.
Bessent described the planned action as an “economic D-Day”, warning countries that continue to engage with Iran that they could face consequences. The measures come after years of sanctions against Tehran and amid continued tensions following months of conflict involving Iran, the United States and Israel.
Iranian officials have responded with threats of economic retaliation. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, warned that if the economic campaign continues, Tehran could stop oil exports through the Strait of Hormuz and other routes in the Persian Gulf.
Rezaei also warned that Iran would consider any country supporting the US economic campaign an adversary.
The escalating confrontation has already disrupted energy markets, with shipping through the Strait of Hormuz severely affected. The strategic waterway is a major transit route for global oil supplies, and further disruption could put additional pressure on international crude prices and fuel markets.
The United States has also urged China to cooperate with its efforts against Iran, citing China’s significant reliance on Gulf oil supplies. Beijing, however, has rejected the use of sanctions and pressure as a means of resolving the dispute and called for diplomacy.
Iran’s economy was already facing high inflation, currency weakness, energy shortages and prolonged sanctions before the latest conflict. Damage to infrastructure, disrupted trade and production losses have added further economic pressure, while the cost of reconstruction is expected to increase the burden on Tehran.
Direct talks between the United States and Iran have remained stalled, prompting countries including Qatar, Pakistan and Türkiye to step up diplomatic efforts.
Iran has also confirmed that Pakistan’s Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir is scheduled to visit Tehran on Monday as part of Islamabad’s efforts to support regional peace and security. A Pakistani government source said the visit is expected to include discussions on recent developments, including the US threat of new sanctions.
The conflict has resulted in thousands of deaths and widespread displacement, while the United States has reported military casualties among its forces deployed in the region.
By Reuters
