US unveils sweeping Iran sanctions as Tehran vows Gulf oil shutdown
The United States has announced a new round of economic sanctions against Iran, with Treasury Secretary Scott Bessent describing the measures as an “economic D-Day” aimed at severing all financial lifelines to Tehran. The announcement comes amid a six-month-old conflict that has seen no direct military strikes in recent weeks, but also no meaningful progress towards peace talks.
In a post on social media, Mr. Bessent said President Donald Trump had “dismantled Iran’s military capabilities” and “buried its nuclear programme.” He added that the United States was now entering the “endgame” with the “single greatest financial offensive ever marshaled against an adversary.” The Treasury Secretary is expected to hold a press conference on Monday (August 24, 2026) to detail the new measures.
Iran has responded defiantly, dismissing the sanctions as a sign of American desperation. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, warned that if the “economic war continues, not a single drop of oil will be exported, neither through the Strait of Hormuz nor from anywhere in the Persian Gulf.” He also said Iran would view any country’s participation in or support for the sanctions as an “act of war.”
Foreign Minister Abbas Araghchi called the new measures “repetitive scenarios” and argued that the shift from military operations to economic pressure demonstrated U.S. weakness. “They are desperate,” he said, urging Washington to engage with Tehran “respectfully” and seek a solution “based on justice and honor.”
The sanctions target Iran’s trade partners, with Mr. Bessent urging cooperation from China, which according to data from analytics firm Kpler purchased more than 80% of Iran’s shipped oil in 2025. President Trump has warned of economic consequences for any country providing “any type of lifeline to Iran.”
The announcement follows a memorandum of understanding (MoU) between Iran and the United States, which Iranian President Masoud Pezeshkian defended as the best way out of the stalled conflict. However, no formal negotiations have taken place, and both sides remain entrenched in their positions.
Iran has endured near-continuous economic sanctions since the Islamic Revolution of 1979. Past sanctions have severely impacted its economy, but Tehran has repeatedly asserted that such measures have failed to force a change in its policies. This latest round is expected to intensify pressure on Iran’s oil exports, which are a critical source of revenue for the government.
The situation remains tense, with the threat of escalation looming. While the United States has ruled out immediate military action, it has made clear its intention to use economic tools to isolate Iran further. Iran, for its part, has vowed to retaliate if the sanctions are implemented, raising concerns about the stability of the Persian Gulf and global oil supplies.
