Iran vows retaliation as Trump administration unleashes new economic sanction on Tehran

Iranian Parliament Speaker Mohammad Bagher Ghalibaf responded to the latest US sanctions in a post on X, saying, “Americans know that no one buys their bombast; the United States is not in an economic position to further restrict its relations with other countries.”

“Iran’s trading partners, both in the media and through messages sent to us, have made it clear that they don’t take these statements into account anywhere,” he said.

Announcing the new measures, US Treasury Secretary Scott Bessent said the United States was launching what he described as an economic campaign against Iran’s financial connections around the world.

“In the Second World War, D-Day marked the historic beginning of a campaign with our allies to target and drive the enemy from its positions, including those in third countries. Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said in a statement.

“President Trump has taken action that his predecessors have long deferred. Under his leadership, America is no longer managing the Iranian threat. We are ending it. Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to Tehran should expect to share in the isolation of a withering regime,” he added.

The US Treasury Department said its newly announced Operation Economic Outcast would target the economic lifelines supporting the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC).

The department said the measures marked the beginning of a “sustained and systematic campaign” aimed at restricting financial resources supporting what it described as the leading state sponsor of terror.

“Treasury has mapped the networks, facilitators, and financial channels that Iran uses to smuggle oil, evade sanctions, and fund terror. Working with our partners across the US government, Treasury will be uncompromising in targeting any source of the regime’s illicit revenue,” the department said.

Key measures announced by the US Treasury

The Treasury is expanding the categories of Iran-related activities that could be subject to secondary sanctions in the future, potentially making it easier to target entities facilitating the Iranian regime.

The department has also issued determinations covering five critical sectors — digital assets, technology, gold, aviation and shipping — which it said the Iranian regime uses to support its economy.

The Office of Foreign Assets Control (OFAC) sanctioned nearly 60 entities, individuals and vessels across multiple jurisdictions that it said enable Iran’s activities, including illicit nuclear and missile technology procurement, cyber operations and oil-revenue generation.

OFAC also suspended several general licences that had previously authorised certain remittance payments to Iran and Iranian access to the US cultural and academic system.

In addition, OFAC issued further guidance on the sanctions risks associated with complying with Iranian demands related to shipping through the Strait of Hormuz.