Washington has imposed fresh restrictions on individuals, companies and vessels linked to Iran’s military, petroleum trade and procurement networks.
Iranian officials have warned of economic and potentially military retaliation, including threats against US interests and energy chokepoints.
Chinese financial institutions were not included in the latest sanctions package, while markets remain alert to potential disruptions to Iranian oil exports and shipping through the Strait of Hormuz.
The United States has expanded economic restrictions against Iran, with Treasury Secretary Scott Bessent announcing sanctions on 60 individuals, entities and vessels on Monday, Reuters reported.
The latest measures are designed to intensify pressure on Tehran while avoiding an immediate shock to the global financial system.
1 August 2026
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US authorities have deliberately stopped short of imposing immediate penalties on international financial institutions, giving foreign governments and businesses time to adjust to the new restrictions.
US Seeks To Isolate Iran Without Shaking Markets
The strategy is aimed at cutting off the financial and commercial networks that sustain Iran's economy without triggering an abrupt disruption across global markets.
“Why would I want to blow up the global financial system?” Bessent told Reuters, explaining the decision to delay immediate action against international financial institutions.
Iran, however, has signalled that it will resist the new sanctions. Tehran said it expects major trading partners to reject Washington's pressure campaign and warned that it is prepared to retaliate.
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Tehran Threatens Economic And Military Response
Iranian Economy Minister Ali Madanizadeh said Tehran was prepared for the new restrictions and warned that Iran's response could extend beyond defensive measures.
“We are fully prepared for the US sanctions,” Madanizadeh said, according to Reuters.
He accused Washington of pursuing an economic attack against Iran and warned that opponents should expect retaliation.
Madanizadeh also claimed that China and Russia had not accepted the US measures and predicted that other countries would resist Washington's campaign.
Separately, Brigadier General Hossein Mohebbi, an Islamic Revolutionary Guard Corps spokesperson, threatened attacks against US interests and energy chokepoints if Iranian infrastructure came under threat, Press TV reported via Reuters.
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Despite the escalating rhetoric, oil prices fell by more than $2 a barrel on Monday, although markets remained alert to the possibility of further disruptions to energy supplies from West Asia.
Why China Matters
One of the most significant aspects of the latest sanctions package is the absence of Chinese financial institutions suspected of facilitating Iranian oil trade.
Washington appears to be weighing the potential consequences of directly targeting Chinese entities, particularly amid broader tensions between the world's two largest economies.
Beijing has already criticised the use of unilateral sanctions and said it would take necessary measures to protect its interests.
The issue also comes ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping next month.
A renewed US blockade of Iranian ports in July has already disrupted Iranian oil flows to China.
Bessent nevertheless stressed that the decision not to immediately target Chinese institutions should not be interpreted as an exemption. “We want to make clear here today that no one is above the reach of US sanctions,” he told Reuters.
Pakistan Attempts Diplomatic Intervention
As economic pressure rises, regional diplomatic efforts are continuing.
Pakistan's army chief Asim Munir travelled to Tehran on Monday for talks with Iranian President Masoud Pezeshkian. The visit followed a telephone conversation between Munir and Trump last week, according to Pakistani sources cited by Reuters.
Pezeshkian urged Washington to change its approach towards Iran, arguing that coercion and pressure would make diplomatic efforts more difficult.
Pakistan had previously helped broker an interim understanding, known as the Islamabad Memorandum, in June 2026, although the arrangement subsequently collapsed.
Iran Conflict Remains Unresolved
The latest sanctions come nearly six months after the United States and Israel launched strikes against Iran.
The conflict has inflicted significant economic and military damage on Tehran and killed then-Supreme Leader Ayatollah Ali Khamenei, while Iran has retained missile and drone capabilities that could threaten US-aligned Gulf states and shipping through the Strait of Hormuz.
The status of Iran's nuclear programme remains uncertain. Washington and Israel continue to seek its dismantling, but the extent of damage to Iran's nuclear infrastructure is not fully known.
With sanctions tightening, Tehran threatening retaliation and diplomatic efforts struggling to gain traction, the latest US measures risk opening another phase of confrontation—one that could have consequences for Iran's oil exports, Gulf security and global energy markets.
