IRAN VOWS TO RESIST NEW U.S. SANCTIONS PUSH

Developing story: Sanctions designations, Iranian responses, Chinese statements and financial-market reactions may change as Washington publishes more details.

Iran said it would resist Washington’s expanded sanctions campaign and insisted the United States is still seeking talks, setting up a new round of pressure and counterpressure after the breakdown of the June diplomatic framework. Reuters reported Tuesday that Tehran dismissed the sanctions threat while U.S. officials warned countries and companies that continued trade with Iran could carry sharper financial consequences.

The latest U.S. move is meant to widen the cost of dealing with Iran beyond traditional sanctions targets. Treasury Secretary Scott Bessent said Washington is prepared to use access to the dollar-based financial system as leverage against those who finance or trade with Tehran. That approach shifts the conflict from bilateral sanctions toward a warning to banks, shippers, insurers, commodity traders and foreign governments.

Iran’s response was defiant. Iranian officials said the pressure would not force Tehran to change course and portrayed the sanctions as another failed attempt to isolate the country. Tehran’s claim that Washington is still seeking talks also serves a political purpose: it lets Iran argue publicly that U.S. pressure masks a need for diplomacy.

The timing matters because the Strait of Hormuz remains disrupted and the U.S.-Iran negotiating window has expired without a final deal. Washington is using economic pressure to try to limit Iran’s revenue and leverage. Iran is using shipping control, oil channels and regional influence to resist that pressure while avoiding a public concession.

The effect of sanctions will depend on enforcement. If the United States targets only smaller entities and shadow-fleet operators, markets may treat the package as manageable. If it moves against major banks, insurers or large buyers in China or Gulf financial hubs, the impact could be much larger and diplomatically riskier.

China is central to the strategy because it has been the dominant buyer of shipped Iranian crude. Washington wants Beijing and Chinese-linked financial channels to avoid Iran. Beijing has criticized unilateral sanctions and said economic pressure will not solve the dispute, creating a direct test of how far the Trump administration is willing to push a major power over Iran.

For Iran, the danger is that economic pressure closes off remaining sources of hard currency before diplomacy resumes. For Washington, the danger is that maximum pressure provokes retaliation at sea, through proxies or in cyberspace before it produces any agreement. Both sides therefore face incentives to sound strong while leaving some indirect path open.

What is confirmed is that the United States is expanding its sanctions pressure and Iran says it will resist while claiming Washington still seeks talks. What remains unresolved is the final reach of the new U.S. measures, the response from China and Gulf intermediaries, and whether sanctions bring negotiation closer or trigger another escalation.

Fact-check date: August 25, 2026. Article type: News. Sources: Reuters; U.S. Department of the Treasury. Developing note: Sanctions designations, Iranian responses, Chinese statements and financial-market reactions may change as Washington publishes more details.