Iran threatens retaliation as US prepares new economic sanctions

Iran threatens retaliation as US prepares new economic sanctions

Iran has threatened to retaliate against any country that joins the United States’ “economic war” against it, as diplomatic efforts to end the months-long conflict have stalled and shipping through the Strait of Hormuz has sharply declined.

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said on Saturday that countries imposing economic restrictions would be treated as enemies. His warning came before planned new US sanctions on Monday and included a threat that “not even a drop of oil” would leave the Gulf region if neighbouring states participated.

What Iran has threatened

Speaking to Iran’s state broadcaster, Rezaei described a three-stage approach. Tehran would first negotiate with countries cooperating with Washington and ask them to distance themselves from the United States. If they did not, he said Iran would strike and target their interests.

Rezaei also warned that alternative energy-export routes outside Hormuz could be targeted. The warning probably refers to the Bab al-Mandeb Strait, a gateway to the Red Sea that Saudi Arabia has used to export oil when Hormuz was blocked.

Related coverage: Iran threatens regional action against countries aiding US economic war.

Why the Strait of Hormuz matters

Iran imposed a blockade on the Strait of Hormuz in response to the US war and has used control of the chokepoint as leverage in negotiations with Washington. The strait carries about one-fifth of global oil and gas exports in peacetime, according to the supplied source material.

The United States has also placed Iranian ports under a naval blockade, affecting Tehran’s international trade. US military facilities operate at locations across the Middle East and North Africa, including Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE, with additional US troops in Jordan.

Why Gulf neighbours face a difficult choice

Gulf states are US allies but depend heavily on Hormuz for oil and gas exports, leaving them exposed to the economic effects of escalation. Iran’s attacks on Gulf countries have already affected their economies, while those governments have condemned attacks on their territory.

More context: Iran weighs economic survival as Washington threatens harsher sanctions.

The UAE restored diplomatic relations with Iran in 2022 but imposed a trade embargo last week after accusing Tehran of a missile attack, which Iran denies. Saudi Arabia and Iran agreed to normalise ties in 2023 under a China-brokered deal. Analysts cited in the source report said geography and the risk of another prolonged war could discourage Gulf states from uncontrolled escalation.

How this fits Iran’s sanctions history

Iran has faced US and other Western sanctions since the 1979 Islamic Revolution. The United States later restricted investment and trade, while the UN and European Union imposed additional measures connected to Iran’s nuclear programme.

The 2015 Joint Comprehensive Plan of Action capped Iran’s nuclear programme in exchange for sanctions relief. Donald Trump withdrew the United States from the agreement in 2018 and restored sanctions under a “maximum pressure” campaign. UN sanctions were reimposed last September after the Security Council voted against permanently lifting economic sanctions.

Also read: Iran warns of possible offensive action as US agreement ends.

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