Expert Explains | Why the fresh US sanctions on Iran is unlikely to have significant impact

The United States has announced new sanctions against Iran on August 24, 2026, in what is being called "Operation Economic Outcast." These sanctions target Iran's digital assets, technology, gold, aviation, and shipping sectors, impacting nearly 60 entities and individuals across several countries. The US Treasury Secretary described the sanctions as "Economic D-Day," a phrase reminiscent of the D-Day invasion in World War II.

In response to these sanctions, Pakistan's Chief of Defence Forces, Asim Munir, visited Iran for the second time since the March conflict, emphasizing efforts to promote regional peace and stability. Reports suggest that Munir also had a conversation with US President Donald Trump before his visit. As the US appears to be shifting away from its military strategy, which has yet to dislodge the Iranian regime, these developments could potentially impact future US-Iran negotiations.

The sanctions aim to intensify the economic pressure on Iran, which has been experiencing high inflation, a declining currency, and rising unemployment. Despite the aggressive nature of the sanctions, historical evidence suggests that they have had limited deterrence effects. The Iranian government has learned to manage under economic duress and has developed a "resistance economy" to cope with the challenges.

The current sanctions may only further solidify Tehran's resolve and strengthen its bargaining position in negotiations.