By Menna AlaaElDin and Kanishka Singh
CAIRO/WASHINGTON, Aug 22 (Reuters) — The United States and Iran traded sharp remarks ahead of Monday’s planned unveiling of new U.S. economic sanctions that could affect Iran and its key trading partners, notably China.
With the conflict approaching the six‑month mark, neither side has resumed fighting nor entered peace negotiations. Meanwhile, Tehran has kept oil traffic through the Strait of Hormuz at a near standstill to leverage its position, warning it will target any unauthorized tankers trying to pass the chokepoint.
U.S. Treasury Secretary Scott Bessent is set to brief reporters at 2 p.m. EDT (1800 GMT) on Monday, where he promises to unveil what he calls “the toughest sanctions in history” on Iran while pressing China to align with Washington. According to 2025 data from Kpler, China purchases over 80% of Iran’s exported oil, and Beijing has called for a diplomatic resolution.
Iranian Foreign Ministry spokesman Esmaeil Baghaei said on Saturday that the forthcoming U.S. sanctions announcement constitutes an “assertion of extraterritorial sovereignty over every independent UN member state.”
He added that such secondary sanctions lack any basis in international law, posting the comment on X.
U.S. President Donald Trump, who has warned of economic repercussions for any nation aiding Iran, said on Friday that the United States is monitoring how the situation unfolds.
He remarked, “They would love to reach a deal, but they aren’t prepared to accept the right one, in my view,” referring to Iran.
HORMUZ TRAFFIC HALTED
Although the United States has effectively barred Iranian ships from their ports, the Strait of Hormuz remains congested, leaving thousands of sailors stranded aboard hundreds of vessels. Ship‑tracking data showed that only four cargo ships transited the strait on Thursday, none of them large crude carriers or LNG tankers.
U.S. Energy Secretary Chris Wright noted that the military has facilitated the movement of roughly eight million barrels of oil per day through the strait on a seven‑day average—a drop from over twenty million barrels daily before the conflict, which amounts to about one‑fifth of global oil consumption.
U.S. strikes have crippled Iran’s economy and devastated its navy and air force, yet Tehran retains sufficient missile and drone capacity to disrupt oil tanker movements and strike regional adversaries.
Trump has still not fulfilled the goals he outlined at the war’s outset, including dismantling Iran’s nuclear program—whose status remains unclear since UN inspectors were expelled in 2025—and fostering conditions for Iranians to topple their clerical leadership.
Thousands have lost their lives, among them 168 Iranian schoolchildren on the war’s opening day. The United States reports more than 750 service members wounded and 18 killed.
IRANIAN ECONOMY DAMAGED
Iran’s armed forces chief of staff, Major General Ali Abdollahi, pledged on Friday that the country would meet any enemy threat with crushing, punishing, and devastating military responses.
Still, President Masoud Pezeshkian called for a diplomatic solution.
He added that it would be preferable to end the war now, while Iran remains strong and dignified, so the world recognizes its victory and highlights how the United States, in violation of norms, has struck schools, hospitals, and infrastructure, earning global hostility, according to the ISNA news agency.
Iran’s parliament speaker, Mohammad Baqer Qalibaf, the country’s main negotiator in mediated talks with the U.S., acknowledged the strain on Iran’s economy in comments to Iranian and Iraqi businesspeople late on Thursday.
He warned that no amount of military strength will matter if the populace suffers hunger and the country lacks financial turnover, economic growth, and domestic production, according to the official news agency IRNA.
(Reporting by Kanishka Singh and Ismail Shakil; Writing by Daniel Trotta; Editing by Cynthia Osterman)
