Iran has vowed retaliation against a new wave of U.S. sanctions, which Washington states will sever the regime's economic lifelines. Iranian Economy Minister Ali Madanizadeh warned that Tehran "knows how to play the game" and has a two-year plan in place to manage the economic pressure, a timeframe that aligns with the remainder of President Trump's term.
U.S. Treasury Secretary Scott Bessent described the measures as "economic D-Day," aiming to compel Iran to negotiate by crippling its economy. While Bessent declined to specify targeted countries or the exact timing of the penalties, Tehran expressed confidence that major trading partners would resist U.S. pressure. The sanctions target individuals, entities, and vessels, including those involved in digital assets, technology, gold, aviation, and shipping. Bessent stated that countries continuing to trade with Iran risk exclusion from the dollar-based financial system.
"We are fully prepared for the U.S. sanctions," Madanizadeh said, adding that "Our defense is no longer so defensive; the enemies should wait for an attack." He also claimed that neither China nor Russia had accepted the U.S. measures, predicting broader international resistance.
The announcement coincided with a sharp drop in the Iranian rial, reaching its lowest historical rate. Brigadier General Hossein Mohebbi of Iran's Islamic Revolutionary Guard Corps vowed significant blows to U.S. interests and energy choke points if Iran's infrastructure is threatened. Previously, Mohsen Rezaei, former chief of the Revolutionary Guards, had threatened to halt all oil exports through the Strait of Hormuz and the Persian Gulf if the economic war persisted.
The U.S. Treasury Department's "Operation Economic Outcast" aims to isolate Iran economically, with Bessent stating, "It is now time for world leaders to make a decision between America and Iran." This move serves as a final warning to nations and companies still engaged in business with Tehran.
Experts suggest Washington is cautious about potential retaliation from China, Iran's largest oil buyer, especially with upcoming talks between President Trump and Chinese President Xi Jinping. The Chinese Foreign Ministry has indicated that Beijing will protect its own interests and that pressure tactics are unhelpful.
Despite recent mediation efforts by Pakistan, which reportedly made progress on de-escalation and reopening the Strait of Hormuz, regional tensions persist. Previous Iranian actions and threats have already severely disrupted shipping through the Strait of Hormuz, a critical global energy waterway. Tehran's Houthi allies have also impacted Red Sea shipping.
Iran has a history of enduring layered sanctions without deterring its leadership. Beyond economic measures, Tehran has engaged in cyber-attacks, including those targeting a UK electricity station and allegedly water plants in Minnesota, while also threatening neighbors participating in U.S. efforts to isolate its economy. Attacks on oil and gas facilities have contributed to rising energy prices and aimed to inflict political and economic damage on the Trump administration.