Tensions between Iran and the United States are moving into a more volatile phase, with Washington preparing to announce a new package of sanctions described as the toughest in its history, while Tehran responds with direct threats of retaliation.
The confrontation is also increasingly affecting energy markets and maritime traffic through the Strait of Hormuz, one of the world’s most important energy corridors.
US Treasury Secretary Scott Bessent said Washington would reveal details of the new measures on Monday, after US President Donald Trump threatened economic consequences against any country that provides Iran with “any kind of assistance”.
In response, Major General Ali Abdollahi, Chief of Staff of Iran’s Armed Forces, said any new US threat would be met with a “large-scale and decisive” response.
He said Iran’s forces were prepared across land, sea and air, as well as in air defence and cyberspace.
Abdollahi warned that Iran’s response would be “crushing, painful and devastating”, signalling Tehran’s readiness to confront any further escalation.
Strait of Hormuz at the Centre of the Confrontation
The political escalation has coincided with a sharp decline in shipping traffic through the Strait of Hormuz.
Data from Kpler showed that only seven cargo vessels passed through the strait on Thursday, compared with more than 130 ships per day before the war.
The United States and Iran had twice reached ceasefire agreements, in April and June, aimed at restoring freedom of navigation, but both agreements collapsed quickly.
Bessent said the new sanctions should not lead to higher oil prices, arguing that intensified economic pressure could reduce the likelihood of large-scale military operations resuming.
Tehran Faces Mounting Economic Pressure
The escalation comes as Iran continues to suffer the effects of sanctions imposed since the 1979 Islamic Revolution, including rising inflation, a weakening currency, energy shortages and damage to infrastructure.
Iranian sources told Reuters that tighter sanctions could increase economic pressure, weaken the religious establishment and open the door to domestic unrest.
Iran’s Foreign Ministry, however, said US pressure would not affect the country’s commitment to its independence and sovereignty.
President Masoud Pezeshkian also said any attack would face a “crushing” response, while at the same time calling for an end to the war.
In the United States, Trump is facing pressure to bring the conflict to an end as fuel prices affect his popularity ahead of the November midterm elections.
China has also emerged as a key factor in Washington’s calculations.
Kpler data showed that China purchased more than 80 per cent of Iranian oil shipments during 2025.
Bessent said China’s heavy dependence on Gulf energy supplies made its participation in the US approach logical.
Beijing, however, warned that sanctions and pressure would not help resolve the crisis and called instead for a diplomatic path.
Gulf states are also facing growing risks from the escalation after energy facilities and desalination plants were subjected to Iranian attacks.
