Iran has strongly condemned US plans for a new package of economic sanctions that Washington is presenting as potentially the most extensive campaign of economic pressure yet imposed on Tehran. US Treasury Secretary Scott Bessent is expected to provide details on Monday after describing the measures as potentially the “toughest sanctions in history”. Washington says the objective is to restrict Iran’s access to revenue, international financial channels and trading partners. Bessent has indicated that the pressure will not be limited to Iranian companies and institutions. Countries, banks, shipping companies and other intermediaries could also face consequences if they continue certain forms of business with Iran. This makes secondary sanctions one of Washington’s most powerful instruments, because foreign companies may effectively have to decide whether access to the US financial system and American markets is more valuable than maintaining business with Tehran. Iran describes the policy as an illegal form of economic coercion and argues that ordinary people ultimately suffer much of the damage. Iranian Foreign Minister Abbas Araghchi has dismissed the latest threat as another version of a strategy that Tehran says has repeatedly failed to force the country to change its fundamental policies.
The new package comes at a time when Iran’s economy is already under intense pressure. The US Treasury has repeatedly targeted what it describes as Iran’s shadow banking system – networks of intermediaries, companies and financial structures allegedly used to transfer money and circumvent existing restrictions. US authorities have announced numerous actions against such networks during 2026 alone. Oil remains particularly important because energy exports are a crucial source of revenue for the Iranian economy. This is where China becomes a central factor. Additional US restrictions could affect not only Iran itself but also companies, banks, commodity traders and shipping operators in countries that continue substantial commercial relationships with Tehran. That creates a risk that the economic confrontation between Washington and Tehran could increasingly affect US relations with other major economies.
The confrontation is particularly dangerous because of the Strait of Hormuz, one of the world’s most important maritime energy corridors. Oil traffic through the waterway has been severely disrupted, while Tehran has threatened action against tankers it considers unauthorised. The sanctions confrontation therefore extends far beyond the Iranian economy. Prolonged disruption of shipping through Hormuz could influence global oil prices, transport costs and inflation well beyond the Middle East. Diplomatic efforts have not completely disappeared, however. Pakistan’s army chief Asim Munir is expected to visit Tehran on Monday as Islamabad attempts to play a mediating role in reducing regional tensions. Iranian President Masoud Pezeshkian has also continued to support a diplomatic solution. This creates an unusual situation in which Washington is preparing a new phase of economic pressure while efforts to find a political exit continue in parallel. The central question after the US package is announced will therefore be not simply how severe the sanctions are, but how many countries and companies are prepared to comply with them. If Washington succeeds in substantially restricting Iran’s foreign trade and financial channels, pressure on the Iranian economy could increase dramatically. If China and other partners continue significant economic relations with Tehran, however, the impact could be more limited. The next phase is consequently becoming more than a bilateral US-Iran dispute – it is also a test of how far the international reach of American economic sanctions can extend.
