US Unveils 'Economic D-Day' Sanctions as Iran Vows to Halt Gulf Oil Exports
The US is set to announce sweeping new sanctions against Iran, which has threatened to block all Gulf oil exports in retaliation.
The United States is preparing to unveil what it calls the "greatest financial offensive ever marshalled" against Iran, with Treasury Secretary Scott Bessent set to announce new sanctions targeting Tehran's trading partners on Monday.
In an opinion piece published on Sunday, Bessent described the upcoming measures as an "economic D-Day," signaling a significant escalation in the financial pressure campaign against the Islamic Republic.
Iran has responded with a stark warning. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, stated that if the economic war continues, "not a single drop of oil will be exported, neither through the Strait of Hormuz nor from anywhere in the Persian Gulf." He further declared that Iran would view any country's support for America's economic war as an act of war.
The threats come amid a six-month-old conflict that has seen US and Israeli strikes degrade much of Iran's conventional military capacity and kill Supreme Leader Ayatollah Ali Khamenei. While no military strikes have occurred in recent weeks, meaningful diplomatic talks have not resumed.
Iran retains enough missile and drone capability to threaten oil tankers in the Strait of Hormuz, a key waterway that has seen shipping nearly halted, putting upward pressure on global fuel prices.
Bessent's op-ed signaled the US would target "fearful nations" that practice "appeasement" by engaging with Iran's economy, warning them to "consider the consequences of sustaining it."
The US has previously urged China, which receives half of its oil imports from the Gulf, to cooperate with the sanctions. A spokesperson for China's embassy in Washington responded that "sanctions and pressure do not help resolve the problem," calling instead for diplomacy.
Iran entered the conflict with high inflation, a weakening currency, and energy shortages. The war has since added damaged infrastructure, disrupted trade, and the immense cost of rebuilding to its challenges.
With no official face-to-face talks between Washington and Tehran since June, other nations including Qatar, Pakistan, and Turkey have attempted to promote diplomacy. Pakistan's army chief, Asim Munir, is scheduled to visit Tehran on Monday as part of these mediation efforts.