Tehran/Washington (Rajeev Sharma): Iran has warned the United States against escalating its economic campaign, saying it is prepared to respond after the Trump administration announced a fresh round of sanctions targeting Tehran’s financial and energy networks.
The latest measures announced by US Treasury Secretary Scott Bessent target 60 individuals, entities and vessels. Washington has also signalled that countries continuing significant trade with Iran could face restrictions affecting their access to the US financial system.
Bessent stopped short of immediately imposing the most severe penalties on Iran’s major trading partners. He said governments and companies would be given time to comply with the new requirements before Washington considers additional action.
Tehran Warns of a Strong Response
Iranian Economy Minister Ali Madanizadeh said Tehran was ready to confront the expanded sanctions, arguing that years of restrictions had forced Iran to develop mechanisms for dealing with economic pressure.
Iranian officials have also issued stronger warnings about a possible military response if the country’s infrastructure comes under attack.
Brigadier General Hossein Mohebbi, a spokesperson for Iran’s Islamic Revolutionary Guard Corps, warned that US interests and key energy routes could be targeted if Iranian infrastructure is threatened.
The statements have added to concerns that an economic dispute could quickly spill into the wider security crisis already affecting the region.
China Under Washington’s Lens
China’s relationship with Iran is likely to remain a major issue as the US attempts to tighten enforcement.
Beijing has been one of the most important buyers of Iranian oil, while Washington has repeatedly sought to restrict Tehran’s ability to generate revenue through energy exports.
The latest US sanctions package did not name Chinese financial institutions that have been accused of helping facilitate Iranian oil transactions.
Bessent nevertheless stressed that American sanctions could potentially reach any entity involved in activities targeted by Washington.
China has criticised the use of unilateral sanctions, saying pressure tactics do not resolve international disputes. Beijing has also indicated that it will take measures it considers necessary to protect its economic interests.
Oil Supply Concerns Remain
The confrontation is being closely monitored by energy markets because Iran has the ability to affect shipping and energy flows through the Gulf.
The Strait of Hormuz, a crucial route for global oil shipments, remains particularly important. Any major disruption could put additional pressure on international energy supplies and prices.
Oil prices nevertheless declined by more than $2 a barrel after the latest US announcement, although traders remain cautious about the possibility of further disruption in the Middle East.
The Trump administration is also seeking to halt attacks on commercial shipping in the Gulf and Red Sea, adding to the pressure on Tehran.
Pakistan Pushes for Dialogue
While Washington and Tehran trade warnings, Pakistan has stepped up diplomatic efforts aimed at reducing tensions.
Pakistan’s army chief Asim Munir met Iranian President Masoud Pezeshkian in Tehran on Monday. The meeting came after Munir’s recent conversation with US President Donald Trump.
Islamabad has previously attempted to facilitate communication between Washington and Tehran. Earlier mediation efforts contributed to an interim agreement in June, although the arrangement later ran into difficulties.
Pezeshkian reportedly told Munir that Washington needed to reconsider its approach towards Iran, arguing that threats and coercive measures would make negotiations harder.
Conflict Continues to Cloud Diplomacy
The latest sanctions come against the backdrop of a wider confrontation involving military strikes, attacks on shipping and disputes over Iran’s nuclear programme.
Although Iran’s conventional military capabilities have reportedly suffered significant damage, Tehran retains missile and drone capabilities that could pose a threat to US partners and regional infrastructure.
The condition of Iran’s nuclear programme also remains uncertain, adding another layer of tension to the standoff.
With Washington preparing further economic pressure and Tehran warning that it will retaliate, the immediate challenge for diplomats will be preventing the sanctions dispute from developing into another major military escalation.
For now, attention is focused on whether the US will expand penalties against countries trading with Iran and how Tehran responds if those measures begin affecting its most important economic partners.
