ADVERTISEMENT
LIVE DESK·Global markets desk·Last updated 14s ago
ADVERTISEMENT
Markets/ForexArticle

Iran dismisses U.S. sanctions threat as ‘desperate’ amid regional tensions

Tehran rejects Washington’s vow of ‘toughest sanctions in history’ after U.S.-Israel strikes, while global oil flows through the Strait of Hormuz remain disrupted.

SL
Sophie Laurent · FX & Rates Desk · 23 Aug 2026 · 13:04 · 2 min read
Share
Iran dismisses U.S. sanctions threat as ‘desperate’ amid regional tensions

Iran on Sunday dismissed threats of new U.S. sanctions as a sign of desperation, following a wave of military strikes by Washington and Israel that have targeted the Islamic Republic since late February. Iranian Foreign Minister Abbas Araqchi said in a video posted on Telegram that the shift from military action to renewed sanctions rhetoric reflected a lack of strategic options. "The fact that they have moved on from military operations to bring up the same old plans shows that they are desperate," Araqchi stated.

Iranian leaders reiterated defiance as the conflict entered its sixth month. President Masoud Pezeshkian, quoted by the ISNA news agency, said it would be preferable to end hostilities "when we are powerful and have dignity," adding that the world recognizes Iran’s resilience despite U.S. attacks on infrastructure. Parliament Speaker Mohammad Baqer Qalibaf said on Saturday that Tehran had received "numerous messages" regarding regional security, signaling ongoing diplomatic engagement despite the escalation.

Euro / US Dollar

EURUSD
Full profile →
1.1684▲ 0.05%
As of 22/08/2026, 21:00:00

The U.S. administration has framed its response as a response to Iran’s regional actions, with Treasury Secretary Scott Bessent scheduled to hold a press conference Monday outlining further measures. In recent remarks, former President Donald Trump warned of economic consequences for any nation providing support to Iran, stating that Washington was observing developments while reiterating that Tehran was not yet prepared to negotiate a viable deal. Trump added that Iran "would love to make a deal" but had not yet met the necessary conditions.

The conflict has disrupted global oil flows, with Iran blocking unauthorized tankers from transiting the Strait of Hormuz—a critical chokepoint for crude shipments. According to 2025 data from Kpler, more than 80% of Iran’s oil exports are purchased by China, a trade relationship that has helped Tehran withstand pressure. The de facto blockade has pushed global oil prices higher, while U.S. airstrikes have severely weakened Iran’s navy and air force, though Tehran retains sufficient missile and drone capabilities to target regional rivals and disrupt maritime traffic.

Diplomatic efforts continue, with Pakistan’s Army Chief Asim Munir set to visit Tehran on Monday. A Pakistani government source said discussions would include recent developments and the U.S. sanctions threat. The nuclear program remains a point of contention, as U.N. inspectors have been barred from Iran since 2025, leaving the status of Tehran’s nuclear activities uncertain.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
ADVERTISEMENT
Share this story
SL
Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

More from Sophie Laurent →
ADVERTISEMENT
ADVERTISEMENT