Iran Vows Retaliation as U.S. Expands Sanctions Pressure

Iran has vowed to retaliate against expanded U.S. sanctions aimed at restricting Tehran’s access to the global economy, while expressing confidence that major trading partners, including China and Russia, will resist Washington’s pressure campaign.

U.S. Treasury Secretary Scott Bessent announced the measures on Monday, warning that countries continuing to trade with Iran could risk losing access to the dollar-based financial system. However, Washington stopped short of immediately imposing its toughest penalties.

The Treasury Department sanctioned 60 individuals, entities and vessels linked to Iran, but the measures did not include Chinese financial institutions suspected of facilitating Iranian oil trade. Bessent said countries and companies would be given time to cut economic ties before further action.

Iranian Economy Minister Ali Madanizadeh said Tehran was “fully prepared” for the sanctions and warned that Iran had tools to respond. He added that China and Russia had not accepted Washington’s measures and predicted resistance from other countries.

Iran’s Islamic Revolutionary Guard Corps also warned of strikes against U.S. interests and key energy routes if Iranian infrastructure comes under threat.

Meanwhile, Pakistan said talks in Tehran had made “significant progress” toward preventing further escalation and reopening the Strait of Hormuz. Pakistani army chief Asim Munir and Interior Minister Mohsin Naqvi participated in discussions with Iranian leaders.

Diplomatic prospects remain uncertain nearly six months after the United States and Israel launched strikes against Iran. The conflict has weakened Iran’s conventional military capabilities but left Tehran with enough missile and drone capacity to threaten Gulf states and shipping through the Strait of Hormuz.

China remains particularly important to Iran as its largest oil customer in recent years. However, renewed U.S. restrictions on Iranian ports have already reduced crude shipments to China.

Bessent defended Washington’s gradual approach, saying aggressive action against major foreign banks could destabilize the global financial system. Still, he warned that no institution was beyond the reach of U.S. sanctions.

China’s Foreign Ministry rejected sanctions and pressure tactics and said Beijing would take necessary steps to protect its interests. Oil prices nevertheless fell more than $2 a barrel as markets weighed the sanctions against potential Middle East supply disruptions.