Key facts
- Iran threatened retaliation against new U.S. sanctions targeting its trade partners.
- The U.S. Treasury sanctioned 60 individuals, entities, and tankers, focusing on oil trade.
- Iran's economy minister, Ali Madanizadeh, stated Tehran is prepared for U.S. "economic terrorist attacks".
- Russia and China have not accepted the latest U.S. sanctions, according to Madanizadeh.
- Major Chinese financial institutions were excluded from the sanctions list to avoid Chinese retaliation.
- Despite sanctions and geopolitical tensions, oil prices decreased at the start of the week.
Iran has issued threats of retaliation against the United States following the announcement of new sanctions aimed at its trade partners. U.S. Treasury Secretary Scott Bessent unveiled "Operation Economic Outcast" on Monday, targeting entities and individuals involved in Iran's trade, particularly its oil sector.
Iran's economy minister, Ali Madanizadeh, stated that Tehran is prepared for what he described as "economic terrorist attacks" from the U.S. and warned that Iran's "defense is no longer so defensive," suggesting an aggressive response. He also noted that Russia and China have not accepted the latest U.S. sanctions and expressed expectations that other trade partners would follow suit.
The U.S. Treasury sanctioned a total of 60 individuals, entities, and tankers. However, the list notably excluded major Chinese financial institutions that are suspected of facilitating Iran's oil trade. Analysts suggest the U.S. is hesitant to risk retaliation from China by directly targeting its entities involved in business with Iran.
Prior to the formal announcement, Iran had already threatened military action in response to the anticipated sanctions. Despite these developments and the ongoing global energy commodity crisis, oil prices saw a decline at the start of the week, though they remain elevated compared to pre-war levels.
China is Iran's largest crude oil buyer, accounting for over 80% of its exports. Shipments have reportedly dropped significantly this month due to the crisis in the Strait of Hormuz and a U.S. naval blockade, with daily exports estimated at 534,000 barrels, down from 823,000 barrels in July.