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Iran warns U.S. of economic retaliation amid escalating sanctions

Tehran cautions Washington over potential blowback from stricter trade restrictions, as Trump administration prepares to unveil sweeping measures. Iranian officials vow reciprocal measures against regional oil exporters.

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Sophie Laurent · FX & Rates Desk · 23 Aug 2026 · 19:03 · 1 min read
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Iran warns U.S. of economic retaliation amid escalating sanctions

The Iranian parliament speaker, Mohammed Bagher Ghalibaf, warned the United States on Thursday that its planned intensification of economic sanctions against Tehran risks triggering a counterproductive backlash.

U.S. President Donald Trump announced on Wednesday a planned escalation in economic pressure on Iran, describing the move as a 'financial D-Day' for the country. He also threatened severe penalties for any nations supporting Tehran, though no specific policy details were provided. U.S. Treasury Secretary Scott Bessent is scheduled to outline the measures in a press briefing on Monday, describing them as 'the harshest sanctions in history.'

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Despite claims from Iranian state media that Tehran has adapted to sanctions by developing sophisticated evasion strategies, the country's economic outlook remains dire. Inflation has surged, placing significant strain on household incomes and public finances. Iranian officials have repeatedly asserted their ability to circumvent restrictions, yet the broader economic impact persists.

In a separate development, Mohsen Rezai, secretary of Iran’s Supreme National Security Council, issued a warning to oil-rich Gulf states against participating in any U.S.-led economic campaign. 'Anyone who joins this economic war will be considered an enemy,' Rezai stated in a televised address. 'Not a single drop of oil will pass through the Persian Gulf.'

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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