Iran Hits Back at Fresh US Sanctions as Economic Strain Deepens

Iran has condemned the latest round of United States economic sanctions as "state terrorism," even as its Supreme Leader called for national unity to weather the deepening financial crisis. The new measures, which target an Egyptian bank and entities linked to Iranian financial networks, come as the conflict approaches the six-month mark with negotiations at a standstill.

The Iranian Foreign Ministry said all countries are obligated under international law to refrain from implementing US sanctions, branding the measures a "crime against humanity" that endangers the health and livelihoods of millions of civilians.

Supreme Leader Ayatollah Mojtaba Khamenei, in a written statement, said he had banned officials from "committing anything that harms social cohesion." He urged authorities to avoid "discouraging statements that weaken national and public motivation," amid concerns that further financial pressure could trigger street protests. He also called on the government to seriously address the chain of economic challenges, including inflation, unemployment, and price management.

The economic toll is severe, with annual inflation hitting 66% last month. President Masoud Pezeshkian told state media that foreign trade had shrunk by nearly 35% due to sanctions and a naval blockade of Iranian ports. He noted that Iran sold about 90 million barrels of oil during the short-lived memorandum of understanding signed with the US in June.

Washington's latest actions include sanctions on Egypt's Banque Misr for doing business with Tehran, a move that would cut off the bank's UAE branches from dollar transactions. Egypt's central bank said it is in contact with US officials, noting the measure is limited to the bank's dollar transactions with correspondent banks. Treasury officials also sanctioned one Hong Kong-based entity and one individual linked to Iran's Bank Melli.

Meanwhile, diplomatic efforts continue. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said he stressed the importance of returning to open shipping through the Strait of Hormuz during talks in Tehran. Iranian Foreign Minister Abbas Araqchi described the discussions as "creative." Iran's Supreme National Security Council said it is preparing a list of conditions for reopening the strait, which have previously included an end to the US blockade and removal of sanctions.

The standoff over the strait remains a key flashpoint. The Islamic Revolutionary Guard Corps' navy dismissed US claims that the waterway is open as "an obvious lie," reiterating that it remains closed to ships without Iranian permission. Preliminary shipping data showed only seven commodity vessels transited the strait on Thursday, down from 17 a day earlier.