Iran vows to retaliate after US widens sanctions

Iran has vowed to retaliate against additional sanctions imposed by the United States, claiming the measures will devastate the country’s economic foundation. Treasury Secretary Scott Bessent announced the new sanctions on Monday, but refrained from the most severe penalties, warning that nations continuing to trade with Iran could be barred from the dollar-based financial system. Bessent did not specify the targeted countries or the effective date, giving them time to comply with the directive.

The Treasury Department announced sanctions on 60 individuals, entities, and vessels, but notably did not mention any Chinese financial institutions suspected of aiding Iran’s oil trade. Prior to the announcement, Iran had threatened a military response and reduced oil exports from the Gulf should the US implement economic measures.

Iranian Economy Minister Ali Madanizadeh stated that Iran was fully prepared for the US sanctions, asserting that the country's enemies aim to launch an economic terrorist attack, but it also possesses tools to counter such actions. Neither China nor Russia accepted the US measures, predicting other countries would resist them. Brigadier General Hossein Mohebbi, a spokesperson for Iran’s Islamic Revolutionary Guard Corps, vowed to inflict heavy blows to US vital interests and energy chokepoints if Iran’s infrastructure is threatened.

Despite signing an interim peace deal in June, the Iran-US relationship quickly deteriorated. The US administration, grappling with an unpopular war that has driven up energy prices, appears to rely on further economic pressure, even though Iran has endured decades of sanctions that have not deterred its leadership. While no major strikes have occurred between the two sides in recent weeks, the conflict remains unresolved.

The US aims to curb Iranian attacks on ships in the Gulf and Red Sea, following strikes by the US and Israel on Iran. Iran retains the capability to attack Gulf neighbors and threaten oil tankers in the Strait of Hormuz, despite the war's toll on its conventional military. Iran's nuclear program, the primary target of US and Israeli aims, remains uncertain. Despite Bessent's warning, oil prices dropped more than $2 a barrel.