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Iran threatens retaliation against expanding US sanctions
Iran confident of support from key trading partners

Iran threatens retaliation against expanding US sanctions

Aug 25, 2026
08:25 am

What's the story

Iran has threatened to retaliate against the United States's expansion of economic sanctions. The Iranian government is confident that its key trading partners will not cave in to US pressure. Iranian Parliament Speaker Mohammad Bagher Ghalibaf took to social media to say that the new US sanctions won't have a major impact, as Washington isn't in a position economically to further isolate itself from other countries.

Sanction details

US sanctions aimed at cutting Iran's economic lifeline

The threat of retaliation comes after US Treasury Secretary Scott Bessent announced measures aimed at cutting off Iran's "economic lifeline."

However, these measures stop short of imposing the most severe sanctions.

Bessent said countries that continue trading with Iran could be pushed out of the dollar-based financial system.

Despite this, he did not name which trading partners would be affected or when penalties would take effect, saying he would instead provide these countries time to comply with the new directive.

Preparedness vow

Iran fully prepared for US sanctions

Iranian Economy Minister Ali Madanizadeh said the country is "fully prepared for the US sanctions."

He accused enemies of planning an economic terrorist attack but assured that Iran has its own tools to respond.

Madanizadeh also claimed that neither China nor Russia had "accepted" these measures and predicted other countries would follow suit.

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Military threat

Oil prices fall as investors prepare for supply disruptions

According to Press TV, Brigadier General Hossein Mohebbi, a spokesperson for Iran's Islamic Revolutionary Guard Corps, warned of heavy retaliation against US vital interests if Iranian infrastructure is threatened.

Despite the sanctions, oil prices fell over $2 a barrel on Monday as investors prepared for potential supply disruptions in the Middle East.

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Mediation efforts

Pakistani army chief visits Iranian president on peace mission

Meanwhile, Pakistani army chief Asim Munir visited Iranian President Masoud Pezeshkian in Tehran on a peace mission.

This came after Munir spoke with US President Donald Trump last week.

Pezeshkian was quoted by Iranian state media as saying that "the United States must correct its tone and approach in interacting with Iran because relying on coercion and bullying will only complicate the processes."

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