Iran threatens retaliation as US prepares sweeping secondary sanctions

Iran has threatened retaliation against governments that cooperate with a new United States campaign to cut the country off from international trade, raising the risk of further disruption to Gulf energy flows.

The planned measures would use secondary sanctions against countries, companies and financial institutions that continue doing business with Iran. US Treasury Secretary Scott Bessent has described the initiative as an exceptionally broad financial offensive and urged allies and other governments to halt trade with Tehran.

Iranian security official Mohsen Rezaei warned that cooperation by neighbouring countries could prompt Tehran to block oil exports through the Persian Gulf and the Strait of Hormuz. Foreign Minister Abbas Araghchi characterised the sanctions effort as a return to economic pressure after military action failed to force a change in Iranian policy.

China, a longstanding buyer of Iranian oil, said it opposed unilateral sanctions lacking a basis in international law. The effectiveness of Washington's campaign will depend partly on whether major trading partners including China, India and Russia consider the threat of US penalties credible.

The confrontation is unfolding amid severe pressure on Iran's economy. Iran's central bank governor said last week that crude exports had virtually stopped because of a US naval blockade, while shipping through the Strait of Hormuz remained heavily disrupted over the weekend. Those conditions have increased concern about energy supplies and wider economic consequences beyond Iran.