Iran vows to retaliate after US widens sanctions

Iran has vowed to respond to any escalation in US economic sanctions, with officials expressing confidence that trading partners would resist Washington's pressure campaign. Treasury Secretary Scott Bessent announced new measures on Monday, but stopped short of the most severe sanctions, warning that countries continuing to trade with Iran risked being excluded from the dollar-based financial system.

The Treasury Department issued sanctions on 60 individuals, entities and vessels, but did not target Chinese financial institutions suspected of facilitating Iran's oil trade.

Earlier this month, Iran and the US signed an interim deal aimed at ending the war that began with US and Israeli attacks on Iran, but the agreement quickly unraveled. Talks mediated by Pakistan focused on preventing further escalation and reopening the Strait of Hormuz, a critical energy chokepoint that carries a fifth of global crude oil and liquefied natural gas flows. Iranian President Hassan Rouhani and his delegation held a constructive exchange with Pakistani officials during the talks.

The White House and State Department have not yet responded to requests for comment. Iranian Economy Minister Ali Madanizadeh stated that Iran is prepared for the US sanctions and warned that "enemies intend to launch an economic terrorist attack on us, but we also have our own tools and know how to play the game." Brigadier General Hossein Mohebbi, a spokesperson for Iran's Islamic Revolutionary Guard Corps, vowed to inflict heavy blows on US vital interests and energy chokepoints if Iran's infrastructure is threatened.

The administration of President Donald Trump appears to be counting on further economic pressure to resolve the unpopular war, despite Iran's decades-long history of enduring US and international sanctions without succumbing. Despite the lack of major military strikes in recent weeks, the conflict continues with no apparent diplomatic resolution in sight.