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Iran vows retaliation as US sanctions stop short of banking curbs
Treasury Secretary Scott Bessent stopped short of targeting Chinese banks as Iran vowed retaliation. Oil fell more than $2 a barrel.
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Iran promised to retaliate against expanded U.S. economic sanctions the Treasury Department unveiled Monday, with Tehran expressing confidence that major trading partners would resist Washington's pressure campaign.
Treasury Secretary Scott Bessent stopped short of the most punishing measures. He said countries that continued trading with Iran risked being forced out of the dollar-based financial system. Bessent declined to name the countries that would be targeted or say when any penalties would take effect, saying he would instead give them time to comply with the new directive.
The Treasury did announce new sanctions on 60 individuals, entities and vessels. The list did not include any of the Chinese financial institutions suspected of facilitating Iran's oil trade.
Oil fell more than $2 a barrel on Monday. Investors braced for the prospect of further supply disruptions from the Middle East. Neither side has launched major strikes in weeks, the war shows little sign of reaching a diplomatic solution almost six months after the U.S. and Israel launched strikes on Iran.
Iranian Economy Minister Ali Madanizadeh said his country was prepared. "Naturally, the enemies intend to launch an economic terrorist attack on us, we also have our own tools and know how to play the game," he told state television. "Our defense is no longer so defensive; the enemies should wait for an attack."
Neither China nor Russia had "accepted" the U.S. measures, Madanizadeh said. He predicted other countries would resist them.