Veiled pro-government supporters holding flags participate in a memorial service for Iran’s late Supreme Leader Ayatollah Khamenei at the Imam Khomeini Grand Mosque in downtown Tehran, Iran, on August 18, 2026. (Photo by Morteza Nikoubazl/NurPhoto via Getty Images)
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Iran continued its harsh rhetoric on Saturday against US plans to impose tough new sanctions.
“The US declaration of new economic sanctions against Iran is much more than a continuation of an illegal ‘economic war’ against a single country,” Iranian Foreign Ministry spokesperson Esmail Bakaei said in a post on X. “This is an assertion of extraterritorial sovereignty over all independent United Nations member states.”
U.S. Treasury Secretary Scott Bessent told CNBC on Thursday that the Trump administration’s plan to destroy Iran’s economy likely eliminates the need for a major U.S. military operation against the Islamic Republic.
Bessent vowed that the United States would create “the greatest concerted economic isolation in the history of the world” against Iran.
He said he would hold a press conference on Monday to “discuss exactly what we are going to do.”
In a preview of the plan, he said the United States would tell all allies: “You’re either with us or you’re against us.”
Vice President J.D. Vance said economic pressure is the United States’ “most effective tool” against Iran.
Vance said on his podcast that the move was a “delicate dance” as both sides put pressure on each other, but added: “The truth of the last few weeks is they were feeling a lot more pressure than we were.”
Iranian Parliament Speaker Mohammad Baqer Qalibaf said at an event in the Iraqi capital Baghdad on Friday that Islamic countries need to come up with a plan to overcome “cruel” sanctions, according to a government release summarizing his remarks.
“Destruction of economic management”
The comments came after US President Donald Trump said the US would launch what he called “the most devastating economic operation ever waged against any country” against Iran. President Trump also threatened to impose harsh economic sanctions on countries that helped Iran evade sanctions, adding: “This will be an economic war and isolation of unprecedented proportions.”
Both countries have refrained from attacking each other’s targets in recent days, but shipping volumes through the economically important Strait of Hormuz remain at levels seen before the US launched its war against Iran on February 28. Negotiations to reopen the strait have stalled.
Recently observed ship traffic through Hormuz remained light, with 10 crossings on Monday and two crossings on Sunday, according to data provided by trade information firm Kpler.
Oil prices were little changed on Friday after Iran’s president said his country wants an early end to the war with the United States.
Brent crude oil futures added 61 cents to close at $94.39 per barrel. U.S. West Texas Intermediate futures rose 23 cents to $87.06. Oil prices ended the week up more than 5% following Bessent’s comments.
Brent crude oil price, year to date. USD per barrel.
Iranian President Masoud Pezeshkian said Iran’s memorandum of understanding with the United States, signed on June 17, was a victory for the Islamic Republic. “It is better to end the war today” when Iran “is in a position of power and dignity,” Pezeshkian said, according to state news agency Press TV.
The memorandum of understanding allows the Iranian government to decide how to manage the Strait of Hormuz through negotiations with Oman and other Gulf states.
One analyst questioned the effectiveness of new economic sanctions.
Helima Croft, head of global commodity strategy at RBC Capital Markets, said Iran is already one of the most sanctioned countries in the world. Croft told CNBC’s “Squawk on the Street” that it’s unclear whether the U.S. will attack Iran’s partners, China and Russia.
Croft said the question is whether further sanctions will change Iran’s behavior. The Iranian government appears to believe it can outlast the United States, she said.
