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Iran warns Gulf states against joining U.S. sanctions amid Hormuz closure

Tehran threatens retaliation if neighbours back Washington’s planned measures, as Strait of Hormuz remains largely closed. New gas discovery adds to regional tensions.

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Sophie Laurent · FX & Rates Desk · 23 Aug 2026 · 13:50 · 2 min read
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Iran warns Gulf states against joining U.S. sanctions amid Hormuz closure

Iran warned neighbouring states on Sunday against participating in new U.S. sanctions, stating that any alignment with Washington would be treated as an act of hostility and expose their interests to retaliation.

Security chief Mohsen Rezaei, speaking via Al Jazeera, said countries that join the Trump administration’s sanctions campaign against Iran would be considered enemies, without specifying which nations were being targeted. The warning preceded a scheduled announcement by U.S. Treasury Secretary Scott Bessent on Monday outlining the scope of the proposed measures, which are described as the toughest sanctions yet imposed on Tehran.

Potential measures include sanctions on independent Chinese refineries purchasing Iranian crude, penalties on major Chinese banks processing Iranian funds, and secondary tariffs on countries trading with Iran. China accounted for more than 80% of Iran’s seaborne oil purchases in 2025, according to official data.

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The Strait of Hormuz, a critical chokepoint for global oil shipments, remains largely closed amid the standoff. Iran has permitted limited vessel movements, including Iraqi oil tankers, but has not reopened the waterway while the U.S. maintains a naval blockade of Iranian ports. U.S. Energy Secretary Chris Wright stated that roughly 8 million barrels of oil per day were being moved through the strait via military operations, down from over 20 million barrels per day before the conflict escalated.

Talks with Oman over reopening arrangements have made progress without finalising an agreement. Meanwhile, Iran’s oil minister Mohsen Paknejad announced the discovery of a gas field containing more than 7.5 trillion cubic feet of gas in the Fars Province, south of the country.

Diplomatic efforts to establish alternative trade routes are underway. French President Emmanuel Macron and Saudi Crown Prince Mohammed bin Salman are expected to discuss expanded pipelines, rail links, and increased use of Omani ports outside the Gulf. Pakistan’s army chief, Asim Munir, is scheduled to visit Tehran on Monday to support regional diplomacy.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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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.

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