Iran Faces Severe Economic Pressure as US Prepares Toughest Sanctions Yet

Iranian President Masoud Pezeshkian stated that his country is facing an all-out economic, military, and security war as the US prepares to announce new sanctions. US Treasury Secretary Scott Bessent is expected to unveil these measures on Monday to economically isolate Iran following months of inconclusive warfare. Officials in Tehran anticipate the sanctions will target Iran's economic relations with third countries.

Mr Pezeshkian acknowledged that Iran faces various economic problems involving water, energy, banking, and sanctions. However, he emphasized that Iranians have surprised the world with their resilience and solidarity after adversaries expected mounting pressure to destabilize the nation. Meanwhile, Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, urged regional countries not to join the US in its economic war, following the UAE's recent decision to suspend commercial exchange with Tehran.

Mr Bessent described the upcoming sanctions as the toughest to date. Diplomatic efforts by mediators Pakistan and Qatar have stalled as Washington and Tehran show little sign of returning to negotiations. A framework agreement signed in June provided a 60-day window for peace talks, but the ceasefire collapsed after Tehran resumed attacks on shipping in the Strait of Hormuz and Washington restarted air strikes on Iranian territory.

Amid the ongoing standoff, Pakistan’s army chief, Field Marshal Asim Munir, is expected to visit Tehran, while Saudi Crown Prince Mohammed bin Salman arrived in Paris for talks with French President Emmanuel Macron. With traffic through the Strait of Hormuz at a standstill, discussions in Paris are set to focus on alternative oil pipeline routes and network expansions, including potential upgrades to Saudi Aramco's East-West pipeline.