Iran Threatens Retaliation Over New US Sanctions Amid Global Tensions

Iran has issued a stern warning to nations that cooperate with the United States’ latest sanctions, describing the measures as an unprecedented financial offensive against Tehran.

In anticipation of the US announcement, the United Arab Emirates, Iran’s largest Middle Eastern trading partner, ceased all trade with Iran—a move Tehran believes was coordinated with Washington.

US Secondary Sanctions and Global Response

The United States plans to impose secondary sanctions on any country or entity engaging in trade with Iran. The effectiveness of these sanctions largely depends on the willingness of major trading partners like China, India, and Russia to comply or risk economic repercussions.

China, historically the main importer of Iranian oil, has dismissed US threats. Despite prior sanctions against Chinese firms, Beijing has instructed companies to ignore US warnings and invoked domestic laws to counteract the sanctions’ impact.

Unlike earlier this year, Iran's oil shipments to Asia have nearly ceased due to a US naval blockade, causing shipping costs to surge. Iran’s central bank governor confirmed that crude exports have virtually stopped, deepening Tehran’s economic crisis marked by hyperinflation and dwindling foreign currency reserves.

Iran’s Response and Regional Implications

Iranian security chief Mohsen Rezaei vowed an “earthquake-like” retaliation if the US proceeds, cautioning Gulf neighbors against joining the sanctions effort. He threatened to block oil exports from the Persian Gulf and the Strait of Hormuz, escalating tensions in a key global energy corridor.

Shipping disruptions in the Strait of Hormuz have already intensified, adding pressure to global energy markets.

Political and Legal Perspectives

Iran’s foreign minister dismissed the sanctions as desperate and ineffective, while legal experts criticized the US for overreaching its jurisdiction, viewing the sanctions as an attack on national sovereignty and international trade norms.

Iranian officials argue that the sanctions will disproportionately harm ordinary citizens and violate fundamental principles of international relations.

US Position and Global Stakes

US Treasury Secretary Scott Bessent described the sanctions as the toughest ever imposed on Iran, urging global partners to sever trade ties or face consequences. He framed the campaign as a binary choice for countries: align with the US or face economic isolation.

Despite US pressure, major powers like China and Russia have so far resisted compliance.

Regional Diplomacy

Meanwhile, Pakistan’s army chief visited Tehran to explore reviving stalled agreements related to shipping control in the Strait of Hormuz, highlighting ongoing regional efforts to manage the escalating crisis.