Iran has vowed to retaliate against the expanded sanctions imposed by the United States, which Washington claims are designed to sever Iran’s economic lifeline. Tehran remains confident that its major trading partners will resist the pressure exerted by the US administration.
On Monday, US Treasury Secretary Scott Bessent announced the new sanctions but refrained from implementing the harshest measures. He warned that countries continuing trade with Iran risk exclusion from the dollar-based global financial system. However, Bessent did not disclose which nations would be targeted or specify when the sanctions would come into effect, opting instead to provide a grace period for compliance.
The Treasury Department did sanction 60 individuals, entities, and vessels, though notably, no Chinese financial institutions suspected of facilitating Iran’s oil trade were included. This omission highlights the delicate balance Washington seeks to maintain, especially ahead of anticipated talks between US President Donald Trump and Chinese President Xi Jinping.
In a significant development, Pakistan has played a mediating role in recent discussions with Tehran. The Pakistani military reported “significant progress” in talks focused on preventing further escalation and reopening the strategically vital Strait of Hormuz. Interior Minister Mohsin Naqvi, who accompanied Army Chief Asim Munir to Tehran, described the meetings as constructive, noting the Iranian president openly shared his government’s views.
Meanwhile, the White House and State Department have not issued immediate comments on the latest developments, and Iran has yet to respond publicly to the recent Pakistani-mediated talks.
Prior to the announcement of the sanctions, Iran had already threatened possible military retaliation and further reductions in oil exports from the Gulf in response to any US economic measures. Iranian Economy Minister Ali Madanizadeh declared the country is fully prepared to face the sanctions, emphasizing that Iran possesses its own countermeasures and is ready to shift from a defensive stance to an offensive one.
He also noted that neither China nor Russia has accepted the US sanctions, predicting that other countries would similarly resist Washington’s efforts. Brigadier General Hossein Mohebbi, spokesperson for Iran’s Islamic Revolutionary Guard Corps, warned of severe consequences for US interests and energy chokepoints should Iran’s infrastructure be targeted.
Despite ongoing conflict and economic pressure, the war shows little sign of a diplomatic resolution. The US continues to seek ways to halt Iranian attacks on vessels in the Gulf and the Red Sea, with shipping data revealing only two commodity vessels passed through the Strait of Hormuz on Monday—the lowest daily count since early May. This strait previously handled about 20% of the world’s crude oil and liquefied natural gas shipments.
Nearly six months have passed since US and Israeli strikes on Iran began, resulting in thousands of deaths, mostly in Iran and Lebanon. While Iran’s conventional military capabilities have been degraded and economic hardships intensified, it retains sufficient missile and drone capacity to threaten Gulf neighbors and disrupt oil tanker traffic in the Strait of Hormuz. The current status of Iran’s nuclear program remains uncertain, despite US and Israeli efforts to dismantle it.
Oil prices stabilized on Tuesday after falling more than $2 per barrel the previous day. When questioned about the decision to withhold sanctions on certain countries and financial institutions, Bessent explained his intent to avoid destabilizing the global financial system and to allow time for countries and companies to sever ties with Iran.
China, as Iran’s largest oil buyer for years, has seen its imports decline due to the US blockade of Iranian ports renewed in mid-July. Washington remains cautious about provoking China ahead of the upcoming Trump-Xi summit, especially given the sensitivity surrounding China’s exports of critical minerals. The Chinese Foreign Ministry condemned sanctions and pressure tactics, asserting that Beijing will take necessary steps to safeguard its interests.
