Iran has vowed to fight back against the latest American sanctions — warning Washington that its response would not be purely defensive.
Iran’s Economy and Finance Minister, Ali Madanizadeh, told a local news network in Tehran that his government had been preparing for this moment, with a two-year plan to withstand the new pressure.
But, he also acknowledged that the Iranian people were already suffering badly from inflation, currency pressure and shortages.
US Treasury Secretary, Scott Bessent, on Monday unveiled an “economic D-Day” for Iran, a new sweeping effort to economically isolate the country after six months of war.
The US Treasury on Monday sanctioned roughly 60 individuals, companies and vessels tied to Iran’s oil revenues, sanctions-evasion networks and weapons programmes, while expanding the threat of secondary sanctions into shipping, aviation, tech, gold and digital assets; further warning countries around the world that they had to choose between trade with Tehran or potentially loosing access to the American financial system.
The Treasury Secretary, Scott Bessent, launching Operation Economic Outcast in an effort to foreclose on every other option available to the Iranian government.
“We want to make clear that no one is above the reach of US sanctions, that if they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted. We find that the best way to engage with countries is through quiet diplomacy and we are level setting with every country to tell them our expectations. We know who they are, they know who they are. So, when the hammer of US Treasury actions falls upon them, they will have no one to blame but themselves.”
Speaking on The Islamic Republic of Iran News Network, the country’s Finance Minister Ali Madanizadeh hit back — while acknowledging that the new US measures would have some impact on an already weary population, he argued that the new punitive measures would fail.
“Naturally, they want to wage economic terrorism against us, and we have our own tools as well. We know how to play this game. This time, they should not think our response will be purely defensive and that we will only defend ourselves. They should also expect us to go on the offensive. The era of a unipolar world is over. As you have seen, two of the world’s major countries rejected these new sanctions and this new plan and refused to go along with them. We are almost certain that many other countries, whether officially or unofficially, will also refuse to accept them, and, God willing, they will fail.”
China, which historically is the biggest purchaser of Iranian oil hit back at the US threats — Foreign Ministry spokesperson, Lin Jian says, “Sanctions and pressure will not help resolve disputes. They will only exacerbate tensions and escalate the situation, which is not in the interest of any party. China calls on relevant parties to act rationally and with restraint and avoid taking any measures that may further escalate tensions or deal a blow to global economic growth and financial stability and return to the right track of political settlement through dialogue and negotiations at an early date. China will closely monitor relevant developments and take necessary measures to safeguard its legitimate rights and interests.”
While key mediator Qatar called the US move unilateral, re-emphasising diplomatic efforts to resolve issues between Washington and Tehran.
Foreign Ministry’s spokesperson, Majed al-Ansari says, “These are unilateral sanctions. They are not UN sanctions. They are not, you know, multilateral sanctions, and therefore the question is to be asked of those who decided to impose these sanctions. For us, our priority was always reaching a diplomatic solution through talks. We are urging the parties to engage fully in the talks and the mediation that is led by Qatar and Pakistan and the other regional players, and we find that to be the only way out of this crisis. And we are encouraging, again, all the parties to engage in good faith.”
Further pointing out that what mattered was a return to navigational rights in the Strait of Hormuz.
With the key waterway still at the heart of the confrontation and shipping currently severely disrupted, the question is whether the American pressure campaign would persuade Iran’s trading partners to fall in line or deepen the divide between Washington and countries unwilling to enforce its sanctions.
And, if Tehran follows through on its warning of an offensive response, the economic confrontation could militarily spill back into the Strait of Hormuz.
