The US administration is set to unveil new sanctions on Monday, described by Treasury Secretary Scott Bessent as an “economic D-Day”, despite warnings from Iran of an immediate response.
Bessent wrote in the Financial Times that “at dawn begins an economic D-Day – the single greatest financial offensive ever marshalled against an adversary”.
US President Donald Trump has previously pledged to wage “Economic Warfare and Isolation on an unprecedented scale” against Iran, describing the planned measures as the “toughest sanctions in history”.
Tehran threatens retaliation
Iran’s security chief, Mohsen Rezaei, warned that Tehran would respond with an “earthquake-like” retaliation if Washington proceeds with the measures.
He also warned Iran’s Gulf neighbours against joining the US sanctions campaign.
“If the countries surrounding Iran join the Americans in their economic war, not a drop of oil will leave the Persian Gulf and the Strait of Hormuz,” Rezaei said, adding that Iran would also target other oil export routes from the Gulf.
The warnings come as shipping through the Strait of Hormuz has been severely disrupted, putting further pressure on global energy markets.
Iran dismisses US pressure
Iranian Foreign Minister Abbas Araghchi has dismissed the expected sanctions as a sign of US desperation, arguing that the measures will fail to defeat Tehran.
He said the US had shifted from military operations to what he described as “the same old plans”.
Araghchi called on Washington to engage with Iran respectfully to find a solution based on “justice and honour”.
Iran’s economy is already under significant pressure from international sanctions, while the country’s infrastructure has suffered repeated attacks during the conflict.
US military resources under pressure
The escalation also comes as the wider conflict continues to affect US military operations.
The US has cancelled a joint amphibious exercise with South Korea scheduled for next month, citing limited availability of American forces because of the war in Iran.
Meanwhile, the USS Abraham Lincoln has spent more than 270 days at sea after Iranian attacks damaged a key US Navy base in Bahrain, forcing the carrier to rely on supplies from a much more distant location.
Oman plans Tehran visit
Oman’s Foreign Minister Sayyid Badr Albusaidi is due to visit Tehran on Tuesday, according to Iran’s Foreign Ministry.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei also said Pakistan’s army chief, who has previously assisted with mediation efforts, would be in Iran on Monday.
The diplomatic contacts come as Washington prepares to announce the new sanctions and Tehran warns of further escalation.
Also read: Strait of Hormuz sees sharp drop in shipping – Fewer than 20 vessels cross
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