Iran has vowed to retaliate against the newly expanded U.S. sanctions aimed at isolating its economy, expressing confidence that its major trading partners will resist the pressure campaign from Washington. Treasury Secretary Scott Bessent unveiled the measures on Monday, nearly six months into the ongoing conflict that the U.S. has been struggling to resolve, stopping short of imposing the most severe sanctions.

Despite facing decades of U.S. and international sanctions that have severely impacted its economy, Iran’s leadership remains undeterred. In response to the U.S. economic measures, Iran threatened potential military action and further reduction in oil exports from the Gulf. Iranian Economy Minister Ali Madanizadeh stated that Iran was ready for any challenges.

Iranian officials, including Brig.-Gen. Hossein Mohebbi of the Islamic Revolutionary Guard Corps, warned of heavy retaliation against U.S. vital interests and energy chokepoints if Iran’s infrastructure is jeopardized. The announcement of the sanctions came as Iran’s currency, the rial, hit a record low amid existing economic challenges such as high inflation and negative growth.

The Iranian population is facing increasing hardships, with staple food items becoming more expensive. Prices of rice have surged by about 60 percent, while beef prices have risen by over 150 percent since the conflict began. The International Monetary Fund projects a contraction of more than five percent in Iran’s gross domestic product.

While the U.S. Treasury Department imposed new sanctions on individuals, entities, and vessels, no Chinese financial institutions suspected of supporting Iran’s oil trade were included in the list. The U.S. emphasized that no entity is immune from sanctions, signaling its intent to enforce compliance.

China, a significant buyer of Iranian oil, has seen reduced oil flows from Iran due to the U.S. blockade of Iranian ports. The U.S. is cautious about potentially provoking Chinese retaliation, especially ahead of anticipated talks between President Donald Trump and Chinese President Xi Jinping. China reiterated that its cooperation with Iran adheres to international law and should not face interference.

The ongoing tensions have led to disruptions in oil shipping through the Strait of Hormuz, with Iran’s ability to impact global oil flows remaining a concern. Despite recent calm in hostilities, diplomatic resolution seems distant as Iran continues to pose threats to its neighbors and maritime traffic. The status of Iran’s nuclear program, a target for the U.S. and Israel, remains uncertain.