Iran warns neighbours against joining US economic war
Iran has warned neighbouring countries not to join Washington's planned "D-Day" economic sanctions, threatening tit-for-tat retaliation against nations that back the US campaign. Supreme National Security Council secretary Mohsen Rezaei said Tehran could target regional oil routes and US commercial interests as Treasury Secretary Scott Bessent prepares to unveil what Washington calls "the toughest sanctions in history" on Monday.
Key Takeaways
- Mohsen Rezaei told IRIB that countries joining the US economic war would be treated as enemies and face "seismic" retaliation.
- US Treasury Secretary Scott Bessent is scheduled to announce new sanctions at 2 p.m. EDT (1800 GMT) on Monday, August 24.
- The UAE, Iran's second-largest trading partner, cut economic ties shortly before the renewed US sanctions push.
- Gulf states face pressure from both Washington's secondary sanctions and Iran's ability to disrupt oil routes beyond the Strait of Hormuz.
- Iran's Foreign Ministry called the planned measures an illegal assertion of extraterritorial sovereignty with no basis in international law.
What did Iran warn its neighbours about?
Iran's warnings escalated ahead of the US announcement. Mohsen Rezaei, the newly appointed head of Iran's Supreme National Security Council, told state broadcaster IRIB that Tehran would retaliate against neighbouring countries that joined what he described as the US "economic war."
"We are telling all nearby countries not to join the US economic war, otherwise we will consider them as enemies," Rezaei said, according to Reuters. He added that if Trump "wants to do something, we will retaliate in a seismic manner."
Rezaei also warned that US commercial and economic interests across the region could become targets if Washington imposed further sanctions. Al Jazeera reported that Iran threatened countries joining the US "economic D-Day" with tit-for-tat action.
Why are Gulf states caught in the middle?
Gulf countries sit between two competing pressures. President Donald Trump has warned of economic consequences for any nation providing "any type of lifeline to Iran," while Tehran has demonstrated its ability to use drones and missiles against US bases and civilian infrastructure across the region.
The Times of India reported that the next sanctions phase could target countries and companies still doing business with Tehran, potentially affecting China, India, Turkey and the United Arab Emirates. Before the war, the Strait of Hormuz carried roughly a fifth of global oil supplies, giving Gulf producers powerful reasons to fear escalation.
The UAE announced it was cutting economic ties with Iran the day before Washington renewed its economic sanctions push, according to Al Jazeera. Iran is already under severe financial strain: oil exports have been virtually halted by the blockade, inflation has surged above 80%, and the IMF has forecast a 6.1% economic contraction this year.
When will the US announce new Iran sanctions?
US Treasury Secretary Scott Bessent is due to hold a press conference at 2 p.m. EDT (1800 GMT) on Monday, August 24, after threatening what he called "the toughest sanctions in history" on Iran. The announcement follows the expiry of a 60-day negotiating window tied to a June memorandum that included concessions allowing ships to pass through the Strait of Hormuz.
Iran's Foreign Ministry spokesperson Esmaeil Baghaei condemned the imminent announcement on Saturday, calling it an "assertion of extraterritorial sovereignty over every independent member state of the United Nations." He said on X that "such secondary sanctions find no foundation in international law."
Trump said on Friday that Iran "would love to make a deal, but they're not ready to make the right deal, in my opinion." For live updates on how regional tensions affect broadcast coverage and breaking news alerts, see our Streaming & TV Alerts hub.
Could Iran's threats affect global oil supplies?
Experts say Tehran views economic, diplomatic and military pressures as linked rather than separate. Paul Musgrave, associate professor of government at Georgetown University in Qatar, told Al Jazeera that Iran may see the economic phase not as distinct from the military conflict but as interconnected, making further military action valid in Tehran's calculus.
Rezaei warned that Iran could target oil routes outside the Strait of Hormuz and that cooperation with Washington could halt exports across the Gulf entirely. Trump has repeatedly claimed the Strait of Hormuz is effectively US territory through its naval blockade, adding to regional unease.
Despite the pressure, Iranian President Masoud Pezeshkian has defended the June memorandum with Washington as a possible route toward settlement, even as Pakistan's army chief Asim Munir prepares a Monday visit to Tehran aimed at promoting regional peace.