'Fully prepared' to counter widened US economic sanctions: Iran
What's the story
Iran has said it is "fully prepared" to tackle the United States's widened US sanctions. US Treasury Secretary Scott Bessent had announced what the US called an "economic D-Day" against Iran, threatening economic isolation for countries that continue to engage financially with Tehran. Bessent called the measures "the single greatest financial offensive ever" against Iran, which would "tighten the noose and block every potential source of revenue." He emphasized that "no one is above the reach of US sanctions."
Economic impact
Iran's response
Responding, Iran's economy minister, Ali Madanizadeh said Iran has a two-year plan in place
"The government is and was ready and has a two-year plan to manage these events," he told state television, adding that Tehran had been "waiting for these plans for a long time."
"We also have our own tools and know how to play the game," he said.
Madanizadeh emphasized that neither China nor Russia had accepted the US measures, predicting resistance from other nations.
Economic strategy
Operation Economic Outcast
The Chinese Foreign Ministry also rejected the sanctions, saying Beijing would do what was necessary to protect China's interests.
Bessent on Monday announced "Operation Economic Outcast," targeting Iran's global financial connections.
He said the US was no longer managing the Iranian threat but ending it.
The Treasury Department identified networks used by Iran to evade sanctions and imposed sanctions on five sectors: digital assets, technology, gold, aviation, and shipping.
Others
Why US was threatening Iran's business partners
When asked why the US was threatening Iran's business partners instead of penalizing them, Bessent said, "Well, we are giving everyone the opportunity to remedy bad behavior."
The economic pressure campaign comes almost six months into the war with Iran, after the US and Israel launched strikes against the country.
Tehran has retaliated to US and Israeli bombings with missile and drone attacks around the region and also largely shut down and taken control of the critical Strait of Hormuz.
Economic history
US gasoline prices exceed $4 a gallon
Former US President Barack Obama and several US allies reached an agreement with Iran in 2015, lifting numerous sanctions in exchange for Iran agreeing to curtail its nuclear program.
But President Donald Trump withdrew from it in 2018 and reinstated all US sanctions on Iran.
During Joe Biden's term, he made some attempts to reinstate the Obama-era deal but did not succeed.