Iran’s foreign minister has brushed off the threat of new US economic sanctions as a “desperate” move, even as the country’s president admitted that the Iranian people are facing “many problems” due to Washington’s efforts to isolate and weaken the economy.
Last week, Donald Trump announced a fresh campaign to ramp up pressure on Iran’s economy, calling it “the most crushing economic operation ever taken against any country.” US Treasury Secretary Scott Bessent is expected to unveil further punitive measures against Iran on Monday, which he has described as “the toughest sanctions in history.”
Despite these threats, Iran’s foreign minister, Abbas Araghchi, insisted the country remains defiant. In a video posted on Telegram on Sunday, he said, “The fact that [US leaders] have moved on from military operations to bringing up the same old plans shows that they are desperate. We have never been afraid. All of their actions – whether blockades or other military moves – have failed, and this new issue of theirs will fail as well.” Araghchi urged Washington to engage with Iran respectfully and find “a solution based on justice and honour.”
His defiant message came just hours after Iran’s president, Masoud Pezeshkian, said Trump had pushed the country into “a full-scale economic, military and security war.” In a speech broadcast on state television, he acknowledged, “I understand we have many problems in society right now. We are trying to prevent these as much as we can. We are striving with all our hearts to overcome inflation, livelihood problems, unemployment, and to secure the future of the people, so that they can live with dignity and pride.”
Iran has seen several waves of mass protests in recent years, often sparked by economic hardships like inflation and currency swings that have eroded purchasing power. At the end of December last year, a protest movement that began over rising living costs turned into large demonstrations against those in power.
Authorities reported more than 3,000 deaths during the unrest, blaming the US and Israel for orchestrating the violence. However, foreign-based NGOs said Iranian officials had carried out a crackdown that killed thousands indiscriminately.
The new leader of Iran’s top security body has also warned neighboring countries against joining US efforts to squeeze Tehran’s economy, and threatened US commercial interests in the region. This comes as Trump doubled down on his unusual claim that the Strait of Hormuz is new US territory.
Mohsen Rezaei, the hardline head of Iran’s supreme national security council, told state television that Iran would target oil-shipping routes out of the Gulf – alternatives to the Strait of Hormuz – if its neighbors joined what he called the “economic war” waged by the US. He said those neighbors would be “considered an enemy” and “we will target their interests.”
Rezaei also claimed Iran had more options in this conflict, saying it had “not yet attacked any American economic interests.” In an interview broadcast on Saturday, he said, “So far, we have only targeted military bases, but if they want to impose economic sanctions on us, the United States has oil and economic companies around Iran and elsewhere, and we will strike them.”
Trump’s efforts to end the war he started along with Israel on 28 February have stalled after a ceasefire.The agreement signed in June fell apart, leaving Iran in control of the Strait of Hormuz—a waterway that carried one-fifth of the world’s oil supplies before the conflict began.
Washington has urged other nations, especially China—one of Iran’s top strategic partners—to join its efforts to isolate the Iranian economy. However, Beijing has criticized the initiative, saying that US sanctions will not resolve the conflict in the Middle East.
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A fruit and vegetable stall at a street market in Tehran on Saturday. Photograph: Abedin Taherkenareh/EPA
One of Iran’s main trading partners, the United Arab Emirates, announced last Tuesday that it was suspending all trade and financial transactions with Tehran until further notice.
The US Treasury has been running “Operation Economic Fury” for months, aiming to cut off Iran’s funding through targeted sanctions. At the same time, a naval blockade in the Strait of Hormuz has tried to stop Iranian oil exports, which are crucial for keeping the country’s economy going.
In recent days, the US president has repeatedly floated the idea of declaring the strait US territory, even sharing a map labeling it as such in a social media post on Saturday.
Donald Trump’s post on Truth Social. Photograph: @realDonaldTrump/TruthSocial
In his interview, Rezaei said talks were still ongoing with Oman—Iran’s neighbor across the strait—about managing the waterway, and mentioned that fees would be introduced.
The French president, Emmanuel Macron, and Saudi Crown Prince Mohammed bin Salman are expected to discuss plans for alternative routes to the Strait of Hormuz during the Saudi leader’s two-day visit to Paris, which starts on Sunday. Officials told the Associated Press that proposals include boosting trade through Omani ports outside the Gulf, expanding or doubling pipelines in Saudi Arabia and elsewhere, and building new rail links.
France and Saudi Arabia have set up a taskforce on energy and logistics connections between the Middle East and Europe, which is scheduled to meet at the ministerial level on Monday. The officials said the focus would be on picking the most strategic projects, securing funding, and defining roles for French companies.
With Agence France-Presse, Associated Press, and Reuters
Frequently Asked Questions
Here is a list of FAQs based on the news that Irans foreign minister called new US sanctions an act of desperation
BeginnerLevel Questions
1 What exactly did Irans foreign minister say
He said that the threat of new US economic sanctions against Iran is an act of desperation He was suggesting that the US is running out of effective options to pressure Iran and is resorting to repeated sanctions that wont actually change Irans behavior
2 Why did he call the sanctions desperate
He believes the US has already imposed so many sanctions that adding new ones wont have a real impact He frames it as a sign of US weakness or frustration rather than strength because the US is repeating a strategy that has already failed to force Iran to capitulate
3 What are economic sanctions
Sanctions are penaltieslike travel bans or freezing assetsthat one country puts on another to punish them or force them to change their policies Economic sanctions specifically target trade banking and oil sales to cut off a countrys income
4 Why is the US threatening new sanctions
The US is usually trying to stop Iran from advancing its nuclear program supporting militant groups or developing ballistic missiles The sanctions are meant to pressure Iran to come back to the negotiating table and agree to stricter limits
5 Will these new sanctions hurt ordinary Iranian people
Yes often they do Sanctions make it harder for Iran to sell oil which is its main source of money This leads to inflation and shortages of medicine and food which hurts regular citizens more than government leaders
IntermediateLevel Questions
6 What is the context behind this latest threat of sanctions
The threat appears to be a response to Irans recent acceleration of uranium enrichment and its refusal to fully cooperate with international nuclear inspectors The US is trying to use economic pressure to force Iran back into compliance with the 2015 nuclear deal which has been in tatters since the US withdrew in 2018
7 If sanctions dont work why does the US keep using them
Sanctions are a middleground tool between diplomacy and military action Even if they dont force a total surrender they can degrade Irans military funding slow its nuclear program and make it more expensive for Iran to operate The US also
