US To Unveil Iran Sanctions As Tehran Threatens Oil Blockade
Treasury Secretary expected to announce new measures after Washington vowed unprecedented economic warfare and isolation against Iran.
US To Unveil Iran Sanctions As Tehran Threatens Oil Blockade
The United States is preparing to unveil new economic measures against Iran on Monday, August 24, as Washington seeks to intensify pressure on Tehran and disrupt financial networks sustaining its economy. He has described the campaign as the “greatest financial offensive ever marshalled” against an adversary, signalling a major escalation in the Trump administration’s strategy of economic isolation. The announcement will be watched by markets and governments across Asia, particularly those dependent on Iranian energy.
The measures are expected to target Iran while pressuring foreign governments, banks, companies and traders that continue doing business with Tehran. Washington has indicated that secondary sanctions could form a key part of the package. Such measures could force countries with significant economic ties to Iran to choose between maintaining those relationships and preserving access to the US financial system.
China and India could face particular pressure because of their economic links with Iran, according to reports from AP. The move could widen Washington’s economic and diplomatic confrontation with countries that continue engaging with Tehran.
Bessent has warned that the administration intends to cut what it considers Iran’s economic lifelines. In an opinion article published in the Financial Times, he said Washington would seek to sever the financial and commercial channels supporting the Iranian government. He also warned countries and entities that maintain ties with Tehran that they could face economic consequences.
Tehran, meanwhile, has responded with threats of its own. Mohsen Rezaei, Iran’s new National Security Council head, has warned that Iran could halt all oil exports from the Persian Gulf if Washington continues what Tehran describes as an economic war. He has also suggested that countries supporting or participating in the US sanctions campaign could be considered to have committed an “act of war.”
The threat is particularly significant because shipping through the Strait of Hormuz remains severely disrupted. The strategic waterway is one of the world’s most important routes for oil and energy shipments. Continued disruption could place additional pressure on global energy supplies and raise the risk of higher prices if traders become increasingly concerned about the availability of crude.
Rezaei has also threatened retaliation against alternative oil-shipping routes in the Persian Gulf. In an interview with Iranian state television that aired late Saturday, he warned that if US President Donald Trump takes further action, Iran would respond in a “seismic” manner. His remarks represent one of the strongest warnings from Tehran since he was appointed to his new position this month.
Rezaei, a former Revolutionary Guard commander and military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, is among a group of senior officials whose appointments have been interpreted as evidence of a harder political and military stance in Tehran. His statements have added to fears that economic confrontation could quickly spill over into a wider regional crisis.
Iranian President Masoud Pezeshkian has similarly called for a diplomatic path out of the current confrontation. Speaking on Sunday, Pezeshkian said a memorandum of understanding signed in mid-June represented the best way to move beyond a situation of “neither war nor peace.” He argued that Iran cannot attract the investment it needs while the country remains caught between open conflict and an unresolved political settlement.
Pezeshkian also defended the agreement against suggestions that it would amount to capitulation. He said there was no provision in the memorandum that required Iran to surrender, while stressing that Supreme Leader Ayatollah Mojtaba Khamenei sets the country’s strategic policies and that the government would follow that direction.
The contrasting positions underline the growing divide between diplomatic efforts and increasingly aggressive threats from both sides. Washington says it wants to isolate Iran economically and deprive its government of financial resources, while Tehran has warned that attempts to tighten the pressure could trigger retaliation affecting regional energy routes.
The immediate focus will now turn to Bessent’s announcement and the exact scope of the new sanctions. If secondary sanctions are imposed on major trading partners, the measures could have consequences well beyond Iran, potentially forcing governments and businesses to reassess their commercial relationships with Tehran.
At the same time, any further disruption to Persian Gulf shipping could increase uncertainty in global energy markets. The combination of financial sanctions, threats against oil exports and instability around the Strait of Hormuz creates a potentially dangerous cycle in which economic pressure could produce military and geopolitical escalation.
For now, Washington is signalling that it intends to push its economic campaign further than previous measures, while Tehran is warning that continued pressure will carry consequences. Whether the new sanctions lead to greater isolation, renewed negotiations or a broader confrontation will depend on how both governments respond after the US announcement.