Iran warns of retaliation as US widens sanctions, spares Chinese banks
The United States has announced a fresh round of sanctions against Iran, targeting dozens of individuals, entities and vessels, while Tehran has pledged to respond. The measures, unveiled by Treasury Secretary Scott Bessent, aim to further restrict Iran's economy but stopped short of penalising Chinese financial institutions that have been implicated in facilitating Iranian oil trade.
Speaking on Monday, Mr. Bessent said countries that continue trading with Iran risked being cut off from the dollar-based financial system. He declined to identify specific countries or provide a timeline for action, saying he preferred to give them time to comply with the new directive.
The Treasury Department's list includes 60 individuals, entities and vessels, but does not name any of the Chinese banks that Washington has previously accused of helping Iran sell its oil. Experts say the US is wary of Chinese retaliation ahead of expected talks between President Donald Trump and Chinese President Xi Jinping next month, with curbs on China's exports of critical minerals being a particular concern.
Iran's Economy Minister Ali Madanizadeh responded by saying Tehran was fully prepared for the sanctions. "Naturally, the enemies intend to launch an economic terrorist attack on us, but we also have our own tools and know how to play the game. Our defence is no longer so defensive; the enemies should wait for an attack," he told state television.
He also asserted that neither China nor Russia had accepted the US measures, and predicted other countries would resist them. In a separate statement, Brigadier General Hossein Mohebbi, a spokesperson for Iran's Islamic Revolutionary Guard Corps, threatened heavy blows to US vital interests and energy chokepoints if Iran's infrastructure is threatened, according to Press TV.
The sanctions are part of a broader US campaign to pressure Iran amid a conflict that began nearly six months ago with US and Israeli strikes on Iran. The war has significantly degraded Iran's conventional military capacity and inflicted economic pain, but Tehran has retained enough missile and drone capability to threaten Gulf neighbours and oil tankers in the Strait of Hormuz, a critical shipping route. The strikes also killed then-Supreme Leader Ayatollah Ali Khamenei.
Thousands of people have died, most of them in Iran and Lebanon, and the conflict has raised concerns about global energy supplies. However, oil prices fell more than $2 a barrel on Monday despite the announcement, suggesting that markets have largely factored in the ongoing tensions.
The US has said it is seeking new ways to end Iranian attacks on ships in the Gulf and Red Sea, which have been carried out by Tehran and its allies. Meanwhile, the exact status of Iran's nuclear programme, which US and Israeli forces aim to eliminate, remains unclear.
Washington's decision to spare Chinese banks reflects a careful balancing act. While the US blockade of Iran's ports has already reduced Iranian oil flows to China, Beijing remains the largest buyer of Iranian oil. The Trump administration appears to be calculating that further pressure on China could jeopardise broader diplomatic and economic objectives.
The new measures are the latest in a series of sanctions that have battered Iran's economy over several decades. Despite the pressure, Iran's leadership has shown no sign of changing course, and Monday's response indicates that Tehran intends to continue its strategy of defiance.
