Archive · 25 Aug 2026
Iran Vows Retaliation After US Widens Sanctions, Threatens Partners
The United States announced more economic penalties against Iran.
The penalties target 60 people, organizations and ships connected to Iran.
The United States also warned that countries trading with Iran could be shut out of the dollar-based financial system.
Iran said it was ready to respond and believed important trading partners would resist the pressure.
Iranian officials warned of attacks on U.S. interests and energy routes if Iran’s infrastructure is attacked.
China said sanctions and pressure tactics are not helpful and that it would protect its interests.
The measures did not include major Chinese financial institutions suspected of supporting Iran’s oil trade.
Shipping through the Strait of Hormuz remains under pressure, and an oil tanker near Oman was reportedly disabled by an unidentified projectile.
The wider conflict has seen no major strikes in weeks but still has little sign of a diplomatic solution.
The United States sanctioned 60 Iranian individuals, entities and vessels while warning trading partners about possible future penalties.
Treasury Secretary Scott Bessent said countries continuing business with Iran could lose access to the dollar-based financial system.
Iranian officials said Tehran was prepared to retaliate economically and militarily if its infrastructure or interests were threatened.
The sanctions did not include major Chinese financial institutions suspected of facilitating Iran’s oil trade.
Tensions around shipping and the Strait of Hormuz continued, while oil prices initially fell before recovering slightly.
- Who
- The United States and Iran are the main parties; China, Russia, Pakistan and other trading partners are also involved.
- What
- The United States expanded sanctions on Iran and threatened possible penalties against countries that continue trading with Tehran; Iran threatened retaliation.
- When
- The measures were announced Monday, August 25, with further reactions and shipping developments reported on Tuesday.
- Where
- The sanctions concern Iran’s international trade, while the security risks involve the Gulf, the Red Sea, the Strait of Hormuz and waters near Oman.
- Why
- Washington said the sanctions were intended to cut off Iran’s economic lifeline and pressure it to end the war and attacks on shipping.
U.S. Pressure
Iranian Resistance
Effect of sanctions
U.S. Pressure
The United States said expanded sanctions and possible financial-system exclusion could cut off Iran’s economic lifeline and force companies and countries to sever ties.
Iranian Resistance
Iranian officials said Tehran had its own economic tools, was fully prepared and expected China, Russia and other partners to resist Washington’s measures.
Risk of escalation
U.S. Pressure
The Trump administration is using additional economic pressure while seeking to stop Iranian attacks on shipping in the Gulf and Red Sea.
Iranian Resistance
Iran warned of military retaliation, attacks on energy chokepoints and further reductions in oil exports if its infrastructure or interests are threatened.
Whether the strategy will work
U.S. Pressure
Washington argues that additional pressure can help end the conflict and restrict Iran’s economic capacity.
Iranian Resistance
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the United States was not in an economic position to further isolate Iran, while Senator Chris Murphy argued that sanctions had limited ability to change the war’s direction.
- Sanctioned targets
- The U.S. Treasury Department sanctioned 60 Iranian individuals, entities and vessels.
- Possible future penalties
- Countries continuing to trade with Iran could face secondary sanctions and exclusion from the dollar-based financial system.
- Iranian response
- Economy Minister Ali Madanizadeh said Iran was fully prepared and warned its response might not remain defensive.
- Military warning
- Islamic Revolutionary Guard Corps spokesperson Hossein Mohebbi threatened action against U.S. interests and energy chokepoints if Iran’s infrastructure is threatened.
- Chinese institutions
- Major Chinese financial institutions suspected of facilitating Iran’s oil trade were not included in the announced sanctions.
- Shipping pressure
- Iran blacklisted 45 tankers over alleged violations of its rules for crossing the Strait of Hormuz.
- Oil prices
- Brent crude later rose 0.3% to $92.44 a barrel and U.S. WTI rose 0.4% to $85.38 after both fell more than 2% the previous session.
Sources
Iran vows retaliation after US widens sanctions, threatens trading partners - Telegraph India
‘Fully prepared’: Iran threatens tit-for-tat move with oil chokehold as US widens economic sanctions
Iran vows to retaliate after US widens sanctions
'Fully Prepared': Iran Threatens Retaliation After Trump Widens Sanctions
