Iran vows to retaliate after US widens sanctions

Iran has vowed to respond to the United States' broadened sanctions, which officials claim will choke the country's economic resources. Tehran remains optimistic that vital trading partners will defy Washington's pressure campaign. U.S. Treasury Secretary Scott Bessent announced the sanctions on Monday, but avoided implementing the most severe restrictions.

He warned that nations continuing to trade with Iran could face exclusion from the dollar-based financial system. Bessent did not disclose which countries would be penalized or the exact date of implementation, instead giving them time to comply with the new directive. The Treasury Department announced sanctions on 60 individuals, entities, and vessels; however, none of the Chinese financial institutions believed to be aiding Iran's oil trade were included.

Iran and the U.S. signed an interim agreement in June to resolve the conflict sparked by U.S. and Israeli strikes on Iran, but the deal, known as the Islamabad memorandum, quickly unraveled. Pakistan's mediator made significant progress in negotiations.