US Expands Economic Sanctions on Iran as Tehran Vows Retaliation

NEW DELHI: The United States has announced an expansion of economic sanctions against Iran, leading Tehran to promise a firm response. The measures, unveiled on Monday by U.S. Treasury Secretary Scott Bessent, are aimed at cutting off Iran's economic lifeline, though the administration stopped short of imposing the most severe penalties immediately.

Secretary Bessent stated that countries continuing to trade with Iran risk being barred from the dollar-based financial system. However, he declined to identify specific targeted nations or specify when the penalties would take effect, stating that countries would be given time to comply and sever ties. The U.S. Treasury Department announced new sanctions targeting 60 individuals, entities, and vessels, though the list omitted Chinese financial institutions suspected of facilitating Iran's oil trade.

In response, Iranian Economy Minister Ali Madanizadeh stated that the country is fully prepared for the latest U.S. sanctions. Madanizadeh told state television that Iran possesses its own tools and defended the nation's readiness against what he termed an economic terrorist attack. Brigadier General Hossein Mohebbi, a spokesperson for Iran’s Islamic Revolutionary Guard Corps, also warned of heavy blows to U.S. vital interests and energy chokepoints if Iranian infrastructure faces threats.

The diplomatic and economic tensions unfold amid a protracted conflict that has pushed global energy prices higher. Despite the announcements, oil prices fell by more than $2 a barrel on Monday, even as investors brace for potential supply disruptions in the Middle East. Approximately six months have passed since initial U.S. and Israel strikes on Iran degraded much of the country's conventional military capacity, though Iran maintains missile and drone capabilities near the Strait of Hormuz.

Regarding China, the largest buyer of Iranian oil, U.S. officials indicated that no entity is above the reach of American sanctions. Experts note that Washington has proceeded with caution regarding Chinese banks ahead of expected talks between U.S. President Donald Trump and Chinese President Xi Jinping. The Chinese Foreign Ministry responded that pressure tactics and sanctions do not help resolve tensions and asserted that Beijing will take necessary steps to protect its interests.

Amid these developments, diplomatic efforts continue in parallel. Pakistani army chief Asim Munir met with Iranian President Masoud Pezeshkian in Tehran following a conversation with President Trump. Pakistan previously attempted mediation that led to an interim peace agreement in June, though the arrangement quickly faltered.

"Geopolitical tensions and trade sanctions of this scale inevitably create ripples across global supply chains and energy markets. For businesses and cross-border enterprises, regulatory shifts and currency restrictions introduce significant operational uncertainty. It is critical for organizations operating in international trade to closely monitor macroeconomic policy changes, manage supply chain exposure, and build resilience against potential market volatility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes