Iran threatens retaliation following US expansion of economic sanctions

The United States has introduced new measures to target networks used by Iran to evade existing sanctions. Treasury Secretary Scott Bessent announced that the administration will focus on expanding enforcement against Iranian trade partners in sectors such as shipping, technology, and digital assets.

In response, Iran has threatened significant retaliation, warning of potential strikes on regional oil producers and European interests. Iranian Foreign Ministry spokesperson Esmail Baghaei stated that the country is prepared to inflict reciprocal pain, suggesting a shift in their strategic approach.

Potential escalations include the disruption of oil and gas exports through the Strait of Hormuz, which previously accounted for one-fifth of global supplies, and continued activity by the Houthi group in the Red Sea targeting Saudi oil exports. Iran has also suggested the possible weaponization of its nuclear program as a response to the economic pressure.