Iran vows to retaliate after US widens sanctions

Tehran has vowed to respond to the United States' expansion of sanctions, which threaten Iran's economic stability, while remaining certain that other major trading nations will oppose Washington's pressure campaign. On Monday, U.S. Treasury Secretary Scott Bessent announced the new measures, although he refrained from imposing the most severe sanctions.

He warned that any country continuing to trade with Iran would risk being excluded from the dollar-based financial system. Bessent did not name the targeted nations or specify when the penalties would become effective, stating he would grant them time to comply with the directive. The Treasury Department announced sanctions on 60 individuals, entities, and vessels, but notably, no Chinese financial institutions were included in the list.

Iran and the U.S. signed an interim deal in June to end the conflict that began with U.S. and Israeli strikes on Iran, but the accord, known as the Islamabad memorandum, quickly disintegrated. Pakistani mediator efforts to salvage the deal have been largely unsuccessful.