U.S.-Iran tensions rise ahead of new sanctions

22 August, 2026
Source: Reuters

The United States and Iran exchanged hostile rhetoric ahead of Washington’s planned announcement of new economic sanctions on Monday, which could target Iran and major trading partners such as China.

U.S. Treasury Secretary Scott Bessent is expected to announce what Washington calls the “toughest sanctions in history” and urge China to cooperate. China buys more than 80% of Iran’s seaborne oil exports, according to Kpler data.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei condemned the planned measures as unlawful “secondary sanctions,” while President Donald Trump warned countries against providing Iran with economic support.

Meanwhile, oil traffic through the Strait of Hormuz has virtually halted. Only four commodity vessels transited the waterway on Thursday, with no large crude tankers or LNG carriers. U.S. Energy Secretary Chris Wright said an average of about 8 million barrels per day was being moved through the strait, down from more than 20 million bpd before the war.

Iranian military chief Ali Abdollahi vowed a severe military response to threats, while President Masoud Pezeshkian called for a diplomatic solution. Parliament Speaker Mohammad Baqer Qalibaf acknowledged growing economic pressure, warning that Iran cannot sustain the conflict without financial activity, economic growth and domestic production.

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