U.S. Treasury Secretary outlines new sanctions plan as Iran vows resistance
The United States is preparing a coordinated sanctions package against Iran, while Iranian officials denounce the move as unlawful economic warfare.
The United States is set to announce a new round of sanctions targeting Iran, with Treasury Secretary Scott Bessent saying the measures aim to create the "greatest coordinated economic isolation in the history of the world." Bessent told CNBC that the strategy could reduce the need for large-scale U.S. military action and announced a news conference for Monday to detail the plan. He also warned allies that they must choose to support or oppose the United States.
Iranian Foreign Ministry spokesman Esmaeil Baqaei responded on X, describing the sanctions as an unlawful "economic warfare" effort that asserts extraterritorial sovereignty over United Nations member states. Iran’s parliament speaker Mohammad Baqer Qalibaf called the sanctions "cruel" and urged Muslim nations to develop a collective response.
Vice President JD Vance called economic pressure the United States' "most effective tool" against Tehran, noting a recent increase in pressure on both sides. President Donald Trump described the upcoming sanctions as the "most crushing economic operation ever taken against any country" and warned of severe penalties for nations that assist Iran.
Oil markets showed little movement after the statements, with Brent crude closing at $94.39 a barrel and U.S. West Texas Intermediate at $87.06. Ship traffic through the Strait of Hormuz remains low, with only a handful of transits reported this week.
Analysts expressed doubt about the impact of additional sanctions, noting that Iran is already heavily sanctioned and questioning whether the United States would target Iran’s partners such as China and Russia. Helima Croft of RBC Capital Markets said it is unclear if further measures will alter Tehran’s behavior, adding that Iran appears confident it can endure the pressure.