Iran vows to retaliate after US widens sanctions

The United States has expanded its economic sanctions against Iran, a move that Tehran has vowed to retaliate against. According to US Treasury Secretary Scott Bessent, the measures aim to cut off Iran's economic lifeline and countries that continue to trade with Iran risk being forced out of the dollar-based financial system. Bessent stated that the goal is to "sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone."

Iran has expressed confidence that major trading partners will resist US pressure. The US has given countries time to comply with the new directive but has not specified which countries will be targeted or when penalties will take effect. President Donald Trump has been making phone calls to world leaders, requesting they stop interactions with Iran.

The announcement has impacted oil prices, with West Texas Intermediate (WTI) crude oil appreciating after registering over 2% losses the previous day, trading around $84.70 per barrel. According to BNY's Geoff Yu, the US is widening its economic confrontation with Iran, which could generate "potential spillovers well beyond Tehran." The situation remains uncertain, with investors focused on how far Washington is prepared to go in tightening restrictions and the potential risks to Middle East energy flows.

Brief written by urgent.news from Al-Monitor, FXStreet, The Jakarta Post, Channel News Asia, CNA - Business — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.