Tehran has promised to retaliate against any country that helps the US impose new sanctions on Iran. Treasury Secretary Scott Bessent has described these sanctions as “the single greatest financial offensive ever marshalled against an adversary.”
Before the US made its announcement, the United Arab Emirates—Iran’s largest trading partner in the Middle East—said it was ending all trade with Iran. Tehran believes this move was coordinated between Washington and the UAE.
The US has said it will impose sanctions on any country or entity that trades with Iran, which is known as secondary sanctions.
The real test of this tough talk will likely depend on whether countries like India, China, and Russia believe that continuing to trade with Iran would lead to credible US retaliation against their own economies. China has been the main buyer of Iranian oil for decades.
In May, the US threatened sanctions against Chinese refiners and the banks that fund them. But China’s commerce department told Chinese firms to ignore US warnings about Iranian oil imports, calling the threats illegitimate. For the first time, China used a government law designed to make US sanctions ineffective within Chinese territory.
The US had placed sanctions on Hengli Petrochemical (Dalian) Refinery Co in April, but Washington largely backed off when Donald Trump realized he risked starting a wider trade and tariff war with China that the US would likely lose.
This time, Chinese foreign ministry spokesperson Lin Jian again said China opposes unilateral sanctions that lack a basis in international law, and that China believes military action, sanctions, and pressure tactics are not the solution.
Trump says he views the Strait of Hormuz as ‘American territory’ Read more
However, unlike in May, Iran’s oil shipments to Asia have already nearly stopped because of the effectiveness of a US naval blockade of Iranian ports. This has driven shipping costs for those cargoes to their highest levels in years. Last week, Iran’s central bank governor, Abdolnaser Hemmati, admitted that the country’s crude exports had “virtually stopped” due to the US blockade.
The White House believes the Iranian economy is once again on the verge of collapse because of hyperinflation and a lack of foreign exchange income caused by the US blockade of oil exports. On Monday, the rial was trading at 1.992 million per dollar on the unregulated market, down 4.5% since the US president announced a “crushing economic operation” against Tehran last week.
“Iran is completely collapsing!!!” Trump posted on social media in capital letters on Monday.
View image in fullscreen A vessel in the Strait of Hormuz near the beach of Bandar Abbas, Iran. Photograph: Amirhosein Khorgooi/ISNA/Reuters
But Iran has been under some form of US economic maximum pressure campaign for more than 20 years and has survived so far.
Iran’s security chief, Mohsen Rezaei, said Tehran would respond with an “earthquake-like” retaliation if Washington went ahead with the proposed measures. He also warned Iran’s Gulf neighbors against joining the US sanctions campaign.
“If the countries surrounding Iran join the Americans in their economic war, not a drop of oil will leave the Persian Gulf and the Strait of Hormuz,” Rezaei said, adding that Iran would also target other oil export routes from the Gulf.
Shipping through the strait remained severely disrupted over the weekend, putting more pressure on global energy markets.
Iran’s foreign minister, Abbas Araghchi, dismissed the expected sanctions as a sign of US desperation, arguing that the measures would fail to defeat Tehran. He said the US had shifted from military operations to what he called “the same old plans.”
Reza Nasri, an international lawyer with ties to the Iranian foreign ministry, said: “The announcement is not a measure against Iran. It is a claim of jurisdiction over the world, and every sovereign state on Earth is its real addressee. Iran is merely the occasion. The demand that no country allow its own banks, businesses, airportsRestricting ship registries from trading lawfully with another country is aimed at everyone else. Sovereignty itself is the target.
Esmail Baghaei, the Iranian foreign ministry spokesperson, said: “Repeating methods that have already been proven to fail will not produce different results, except to show how hostile and spiteful America is toward every Iranian. It knows very well that these sanctions will hurt ordinary Iranian citizens.”
He added: “Forcing or intimidating other countries to stop or limit their trade with another country means violating the most important foundation of international relations and the most fundamental pillar of the United Nations charter, which is respect for the national sovereignty of countries.”
Hassan Ahmadian, a professor of West Asian studies at the University of Tehran, said: “There isn’t a single new sanction. Everything in Iran has been under primary and secondary sanctions since 2018. Since these sanctions failed to achieve the goals the US and Israel wanted, both sides turned to military action. The big fanfare about an ‘economic war’ is really just a public admission of a major step backward. After failing militarily, Washington is clearly stepping back to square one – the economy.”
View image in fullscreen
Iranians walk past an anti-US billboard featuring Donald Trump in Tehran. Photograph: Abedin Taherkenareh/EPA
He said Iran had been signalling in recent weeks that US economic warfare was no longer an acceptable option for Tehran, and it would prefer going to war rather than standing by while the US implements the blockade. He said this involved “Iranian calculations related to military capabilities, the American domestic situation, and the Iranian domestic situation”.
Last Thursday, Bessent claimed in an interview with CNBC that “the US will lead the Islamic Republic of Iran to collapse with the toughest sanctions in history”.
The Treasury secretary claimed “the US government is asking its allies and the rest of the world to stop trading with Iran”. He added that the US “will use all its power against anyone who does not comply with this demand”.
“Either the countries are with us or against us,” Bessent said. “It is time for our allies and the rest of the world to decide, and we will destroy the economy of this regime.” Writing in the Financial Times on Sunday, he said: “Total financial isolation can remove the need for American force while expanding freedom for our allies. Those who cut off Iran’s remaining financial and commercial connections will strengthen their own. They will gain deeper access to global capital, boost confidence in their markets, and achieve the standing they seek in the world economy.”
But China and Russia have so far shown no interest in giving in to US pressure.
By coincidence, Pakistan’s army chief, Field Marshal Syed Asim Munir, flew to Tehran on Monday, where he will explore the chance to revive talks on the stalled memorandum of understanding signed in June. However, neither Iran nor the US has implemented it, largely due to a dispute over whether the memorandum gave Iran interim control over shipping in the Strait of Hormuz.
Frequently Asked Questions
Here is a list of FAQs about Irans vow to retaliate against countries cooperating with new US sanctions written in a natural clear and concise style
BeginnerLevel Questions
Q What is happening between Iran and the US right now
A The US has announced new sanctions against Iran In response Iran has said it will take action against any country that helps enforce or cooperate with these new sanctions
Q What does retaliate mean in this context
A It means Iran is threatening to take negative action in response This could include economic measures diplomatic actions or military threats against those countries
Q Why is Iran threatening other countries
A Iran sees the sanctions as an attack on its economy By threatening countries that cooperate Iran is trying to discourage them from participating and to pressure the US to back down
Q What are sanctions
A Sanctions are penalties or restrictions placed by one country on another They often involve limiting trade freezing assets or banning financial transactions to pressure the targeted country to change its behavior
Q Is this just between Iran and the US or are other countries involved
A Other countries are involved because the US sanctions often require other nations to stop buying Iranian oil or doing business with Iranian banks Iran is specifically targeting these countries with its threats
AdvancedLevel Questions
Q What kind of retaliation is Iran likely to use
A Iran has several options It could retaliate by
Disrupting shipping in the Strait of Hormuz
Launching cyberattacks on the infrastructure of cooperating countries
Increasing support for proxy forces in the region to attack US allies
Imposing its own sanctions or trade restrictions on those countries
Q How can Iran enforce its threats against other sovereign nations
A Irans ability to enforce threats varies It has strong leverage in the Persian Gulf through its military and its control of the Strait of Hormuz It also has significant influence over militant groups in Lebanon Syria Iraq and Yemen which it can use to pressure US allies in the region
Q What is the Strait of Hormuz and why is it important
