The United States has issued a stark warning to Iran, promising what it describes as "the greatest financial offensive ever marshalled" as officials prepare to implement new economic sanctions starting Monday, targeting Iran's trade partners.
In response, Iran has threatened to halt all oil exports from the Gulf "if the economic war continues."
U.S. Treasury Secretary Scott Bessent is scheduled to hold a press conference at 1 p.m. EDT (1700 GMT) on Monday, where he is expected to announce even harsher measures aimed at Iran, a nation that has faced nearly continuous economic sanctions since the Islamic Revolution in 1979.
Bessent emphasized the gravity of the situation, stating in an opinion piece in the Financial Times on Sunday, "At dawn begins an economic D-Day — the single greatest financial offensive ever marshalled against an adversary."
While military strikes between the warring nations have paused for weeks, there has been no productive dialogue to resolve the six-month conflict.
The ongoing conflict has led to thousands of casualties, primarily in Iran and Lebanon, since the onset of U.S. and Israeli strikes on February 28, which have significantly weakened Iran's conventional military capability while causing considerable economic distress, including the death of Iranian Supreme Leader Ayatollah Ali Khamenei.
Iran has maintained sufficient missile and drone capabilities to pose a threat to its Gulf neighbors and disrupt oil tanker traffic in the Strait of Hormuz. This situation has nearly paralyzed shipping in this critical waterway, putting upward pressure on global fuel prices. The precise status of Iran's nuclear program, which the United States and Israel aim to eliminate, remains unclear.
Though specifics were not disclosed, Bessent indicated that the U.S. would focus on “fearful nations” engaging in “appeasement” through interactions with Iran's economy and financial systems. In an opinion piece for the Financial Times, he cautioned these nations to reconsider the implications of supporting such actions.
Iran has preemptively prepared for anticipated sanctions, issuing stern warnings that suggest a significant military response may be forthcoming. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, indicated on Sunday that economic retaliation could follow. He declared, "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,” adding that any nation aiding the U.S.'s economic campaign against Iran would be seen as waging war.
Bessent has also encouraged China to collaborate with the U.S., pointing out that historically, China has sourced half of its oil imports from the Gulf. In response, a spokesperson for China's embassy in Washington expressed that “sanctions and pressure do not help resolve the problem” and advocated for diplomatic efforts.
Even before the recent U.S. and Israeli strikes that damaged portions of its infrastructure, Iran's economy had been faltering under the weight of international sanctions. While Tehran projects a defiant front, officials have cautioned that continued economic pressure could heighten hardships, reignite civil unrest, and further undermine the legitimacy of the Islamic Republic.
As Iran faces high inflation, a declining currency, energy shortages, and significant structural weaknesses, it must now grapple with damaged infrastructure, interrupted trade, and the financial burden of reconstruction.
In light of the absence of direct diplomatic discussions between the U.S. and Iran—last held in June in Switzerland—other nations like Qatar, Pakistan, and Turkey have sought to mediate. Iran has announced that Pakistan's army chief, Asim Munir, will be visiting Tehran on Monday to engage in dialogue aimed at fostering peace and security in the region. However, details on the meeting remain sparse. Munir is expected to address recent developments, including the U.S. threats of additional sanctions.
The toll of U.S.-Israeli strikes on Iran, along with Israeli assaults on Lebanon during the ongoing conflict, has resulted in thousands of casualties and widespread displacement. The U.S. has reported 18 military personnel killed and over 750 injured in these confrontations.
