Tehran Threatens Regional Retaliation Against Any Nation Aiding U.S. Economic Sanctions

President Donald Trump has warned of an impending “Economic D-Day” for Iran, prompting Tehran to vow fierce retaliation against any nation assisting Washington’s isolation campaign.

Mohsen Rezaei, Iran’s newly appointed security chief, vowed on Saturday to target the interests of neighboring oil-rich states if they join U.S. efforts to further isolate the Islamic Republic. With Iran’s economy already in free fall, Rezaei asserted that Tehran would prevent “even a single drop of oil” from leaving the region.

“Any country that partners with the United States in imposing economic restrictions on us will be treated as an enemy,” Rezaei stated in an interview with Iran’s state broadcaster.

Rezaei, a political hard-liner and former commander of the Revolutionary Guards who assumed his new role two weeks ago, adopted an aggressively hawkish tone. This aligns with Iran’s broader regional strategy since the conflict began last February. During the interview, he even questioned whether Iran should pursue the development of nuclear weapons—a stance Tehran has consistently denied pursuing.

Although active military hostilities have subsided, Iran and the United States remain locked in a tense economic standoff. In addition to a naval blockade, President Trump has threatened “tremendous economic consequences” for any nation doing business with Tehran. U.S. Treasury Secretary Scott Bessent is expected to announce Washington’s comprehensive economic plan against Iran on Monday.

Iran continues to disrupt global energy markets by blocking shipping traffic through the Strait of Hormuz, a critical chokepoint for Persian Gulf oil and gas exports. Tehran has stated it will not lift the blockade until a deal is reached with Washington.

In response, regional oil producers have invested billions of dollars in expanding pipelines and alternative infrastructure to bypass the strait. For example, Saudi Arabia has significantly reduced its reliance on the Strait of Hormuz by routing oil through pipelines to Red Sea terminals, while Iraq has increased pipeline exports to Turkey or trucked oil through neighboring Syria for export.

Rezaei stated that Iran would initially attempt diplomatic negotiations with countries perceived as joining the U.S. pressure campaign. However, if these efforts fail, Tehran will escalate its blockade to prevent oil exports from the Persian Gulf entirely, not just through the Strait of Hormuz.

“Countries cannot join America in imposing an economic blockade and harm our interests while we allow oil to freely leave the Persian Gulf,” he declared. While Iran is currently not interfering with alternative export routes, Rezaei warned that Tehran will target those routes as well.

He signaled Iran’s intent to expand its confrontational posture from the military to the economic sphere as the Trump administration intensifies its economic pressure. Last week, Treasury Secretary Bessent warned of “never before seen” measures, which analysts suggest could include secondary sanctions on nations purchasing Iranian oil or stricter penalties on financial transactions with Tehran.

Economic warfare is nothing new to Iran, which previously faced “maximum pressure” sanctions during Trump’s first administration and has endured various U.S. sanctions since the Islamic Republic was established in 1979.

This time, however, Iran’s economy is facing one of its most severe crises. The nation’s infrastructure has been deeply battered by the ongoing conflict. Even before the war began, dire economic conditions triggered nationwide protests, which security forces violently suppressed, resulting in thousands of deaths.

Since the conflict started, the country has grappled with soaring food prices and skyrocketing unemployment, rendering basic food items increasingly unaffordable for millions of Iranians.

In recent weeks, the government has struggled to address a growing fuel crisis, exacerbated by damaged infrastructure and slowed imports due to the U.S. maritime blockade. Authorities are attempting to maintain subsidized gasoline prices that Iranians depend on, fearing that any adjustments could trigger widespread unrest.

Now, President Trump’s renewed threats risk further tightening the economic vise around Iran from its neighbors and key trading partners.

Earlier this week, the United Arab Emirates suspended all trade and financial transactions with Iran, a move that could severely impact Iranian importers’ ability to pay for goods through U.A.E.-provided financial services.

Iranian President Masoud Pezeshkian stated on Sunday that the country is engaged in a “full-scale economic, military, and security war,” adding that his government is actively seeking ways to counter the mounting economic pressures.

“We have stood firm and are striving to serve our people in the face of this unequal war,” Pezeshkian said in a speech.

Unlike hard-liners such as Rezaei, Pezeshkian has advocated for a return to diplomatic negotiations with Washington, arguing that Iran should leverage its current strategic position to secure a favorable deal.

In contrast, Rezaei urged the public to “launch an economic jihad” in the interview. He argued that Iranians must reduce their reliance on state subsidies and imports, advocating for increased self-sufficiency through local production.

“Every home can become a launcher in the economic war,” he said. “Every neighborhood can become a missile base in the economic war.”

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