---
title: "US sanctions Iran, threatens retaliation for trade"
url: https://www.hererockhill.com/2026/08/25/us-iran-sanctions-trade-retaliation/
date: 2026-08-25T13:10:40+00:00
modified: 2026-08-25T13:10:40+00:00
author: "Hannah Ford"
categories: ["News"]
site: "HERE Rock Hill"
attribution: "HERE Rock Hill"
---

# US sanctions Iran, threatens retaliation for trade

*Source: [HERE Rock Hill](https://www.hererockhill.com/2026/08/25/us-iran-sanctions-trade-retaliation/) — August 25, 2026 by Hannah Ford*

On Monday, August 24, Treasury Secretary Scott Bessent announced new US sanctions targeting all potential revenue streams for Iran. Bessent warned nations globally to sever economic ties with Tehran or face retaliatory measures from the United States.

The Secretary emphasized that operating in what he termed the gray spaces of the conflict is no longer acceptable. While he did not specify which countries might face secondary sanctions, China, Turkey, and the United Arab Emirates are recognized as Iran’s largest trade partners. Bessent stated that any economic engagement with the Iranian regime would expose those responsible to the full reach of American power, leaving no ambiguity regarding the US position.

These new sanctions are intended to intensify pressure on Iran’s economy, which is already struggling under previous sanctions and a US naval blockade. The announcement coincided with Iran’s currency, the rial, hitting a record low of 2.02 million to the US dollar in currency markets, significantly weaker than the official Central Bank rate of approximately 1.5 million rial to the dollar. The rial had been under strain even before the February 28 attacks by the US and Israel, facing double-digit inflation and negative growth. The ongoing nearly six-month conflict has further exacerbated the currency’s decline.

Iranian citizens are experiencing increasing unaffordability for daily necessities, with rice prices up about 60% and beef prices more than 150% higher since the war began. The International Monetary Fund projects Iran’s gross domestic product to contract by over 5%.

Despite the economic pressure, it has not yet translated into political leverage. Iran maintains a strategic advantage by disrupting traffic in the Strait of Hormuz, a vital waterway through which a fifth of the world’s traded oil transited before the conflict. Iran is currently refusing to fully reopen the strait unless it can impose charges on passing ships, causing significant damage to the global economy and increasing pressure on President Donald Trump ahead of congressional elections. The conflict has largely become a struggle for control over this crucial strait.

In an effort to break the stalemate, the administration promised stronger sanctions, including secondary sanctions on countries that continue to conduct business with Iran. President Trump posted on social media that Iran is completely collapsing. Last week, the United Arab Emirates, historically one of Iran’s largest trading partners and its primary source of imports, announced the suspension of all trade with Iran.

Iranian Foreign Ministry spokesperson Esmail Baghaei stated on Monday that any escalation of this situation would undoubtedly have consequences, asserting that Iran’s hands are not tied.

Pakistan, which facilitated a 60-day ceasefire in June, sent a high-level delegation to Iran on Monday to encourage a return to negotiations between the US and Iran. Field Marshal Asim Munir, accompanied by Pakistani Interior Minister Mohsin Naqvi, met with Iranian Interior Minister Eskandar Momeni in Tehran. Munir was expected to remain in Iran overnight for meetings with the Iranian president and other senior officials. Munir’s previous visit to Tehran in May helped pave the way for a memorandum of understanding signed by the US and Iran in June.

In Tehran, 73-year-old Sadegh Mahmoudi expressed little hope for a resolution, joining a line to purchase US dollars with his savings to protect against further currency depreciation.