Tensions between the United States and Iran intensified on Friday and Saturday as both sides issued sharp warnings ahead of Washington’s planned announcement of sweeping new economic sanctions targeting Tehran on Monday.
U.S. Treasury Secretary Scott Bessent vowed to unveil what he described as the toughest sanctions in history against Iran, while urging China—reportedly the destination for more than 80% of Iran’s exported oil in 2025—to comply with Washington’s measures. Beijing, in response, reiterated calls for diplomacy rather than punitive action. The escalation comes as the six-month-old conflict between the two nations shows no signs of abating, with both sides exchanging increasingly hostile rhetoric.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei condemned the impending sanctions as an illegitimate assertion of extraterritorial sovereignty, stating on social media platform X that such measures have no foundation in international law. On Friday, U.S. President Donald Trump warned other countries against providing any form of support to Iran, while Energy Secretary Chris Wright emphasized the administration’s commitment to enforcing the new restrictions.
Military posturing has accompanied the diplomatic standoff. Major General Ali Abdollahi, chief of staff of Iran’s armed forces, pledged a military response with "crushing, punishing and devastating" consequences. Earlier in the week, Abdollahi had reiterated threats to strike unauthorized vessels attempting to transit the Strait of Hormuz, where oil shipments have effectively ground to a halt. The U.S. military has played a key role in maintaining a seven-day average flow of 8 million barrels per day through the strait—down sharply from pre-war volumes exceeding 20 million barrels daily, or roughly one-fifth of global consumption.
The conflict has already exacted a heavy toll. Iranian officials reported 168 schoolchildren killed in the opening hours of the war, while U.S. military casualties included 18 personnel killed and more than 750 wounded. Thousands of additional fatalities have been reported across both sides. Iran’s President Masoud Pezeshkian accused the U.S. of attacking schools, hospitals, and infrastructure, framing the conflict as an existential struggle for national dignity. Parliament speaker Mohammad Baqer Qalibaf warned that Iran’s military strength would be meaningless without economic stability, highlighting the strain on civilian livelihoods amid prolonged hostilities.
The Strait of Hormuz remains a flashpoint, with only four commodity ships transiting on Thursday—none of them large crude carriers or liquefied natural gas tankers. Iran has threatened to target any unauthorized vessels, leaving hundreds of stranded seafarers aboard vessels unable to proceed. Meanwhile, the U.S. has effectively blockaded Iranian vessels in their home ports, further tightening the economic noose around Tehran.
Against this backdrop, global markets reflected heightened uncertainty. Gold futures surged 1.97% to $4,661.60, while silver and copper also posted gains of 1.33% and 1.72%, respectively. U.S. equity benchmarks edged higher, with the Dow Jones Industrial Average rising 0.98% to 53,277.01, though the S&P 500 Volatility Index fell 5.50% to 15.13. Crude oil benchmarks showed mixed signals, with Brent futures up 0.16% at $93.93 and WTI futures down 0.22% at $86.64.
The U.N. has been unable to conduct inspections in the region since 2025, and Kpler data cited in recent reports underscores the scale of disruptions to Iran’s oil exports, which have been largely rerouted to China. The coming week will test whether Washington’s latest sanctions can force a shift in Tehran’s calculus or further entrench the standoff.
