Iran's warning over economic war

Iran's top security official, Mohsen Rezaei, warned on Saturday that any country joining the United States' "economic war" against Iran would be regarded as an enemy, with "seismic" retaliation. In an interview with state broadcaster IRIB, Rezaei, secretary of Iran's Supreme National Security Council, said Iran was appealing to all countries, including its neighbors, not to participate in US economic restrictions.

Rezaei said Iran would target oil-shipping routes out of the Persian Gulf, including alternatives to the Strait of Hormuz, if neighbors joined the economic war. "Not a single drop of oil will leave the Persian Gulf and the Strait of Hormuz, and we will also target other routes," he said, as reported by multiple outlets including Al Jazeera and The Tribune. He added that Iran does not want the conflict to spread but will damage the interests of neighbors if they support the US.

Rezaei described a three-stage strategy: first negotiate, then strike. "We will first negotiate with them. We will hold talks and tell them to step aside and distance themselves from the United States. But if they do not act, we will strike. We will target that country's interests," he said, as quoted by Al Jazeera.

US pressure campaign

The warning came after US President Donald Trump announced the "most crushing economic operation ever taken" against Iran, pledging "tremendous economic consequences" for any country providing Iran a lifeline. Trump said the new measures would target oil smuggling, financial transfers, exchange houses, ship registries, and front companies, calling it an "Economic D-Day," as reported by The Tribune. He posted on Truth Social: "This will be Economic Warfare and Isolation on an unprecedented scale."

US Treasury Secretary Scott Bessent echoed the pressure, saying "You're either with us or against us," and urged cooperation from China, which buys more than 80 percent of Iran's oil shipments, according to Al Jazeera.

Iranian officials dismissed the US campaign. Foreign Minister Abbas Araghchi said the US anti-Iran economic operation is "bound to fail," citing past failed sanctions efforts. "14 years ago: 'Most crippling sanctions in history.' Failed. 8 years ago: 'Maximum pressure.' Failed. 5 months ago: 'Unconditional surrender.' Failed. Today: 'Most crushing economic operation ever.' Bound to fail," he posted on X, as reported by Lokmat Times. Foreign Ministry spokesperson Esmaeil Baghaei called the sanctions an "assertion of extraterritorial sovereignty over every independent member state of the United Nations," saying such secondary sanctions have no foundation in international law.

First Vice President Mohammad Reza Aref said the government will not allow "America's economic terrorism to target the economic stability and livelihoods of the people," according to The Tribune.

Strait of Hormuz closure

Iran closed the Strait of Hormuz shortly after US and Israeli strikes on February 28. Rezaei said the strait would remain closed until the US fulfills its commitments under a peace memorandum signed in June. He said discussions with Oman over management of the strait were ongoing, with fees to be imposed. Rezaei also said Iran and Oman have agreed on a middle shipping route through the strait, but a joint statement is not yet ready, as reported by Sputnik News.

Iran has helped some ships carrying Iraqi oil transit the strait, according to Iraqi President Nizar Amidi, who said there is facilitation for some ships. A parliamentary committee in Iran has supported legislation requiring vessels from authorized countries to pay Tehran for services along the strait, as reported by The Indian Express.

Meanwhile, France and Saudi Arabia are expected to discuss plans to develop alternative routes to the strait during the Saudi crown prince's visit to Paris, according to multiple outlets.

Egypt's diplomatic push

Egyptian Foreign Minister Badr Abdelatty and Iranian Foreign Minister Abbas Araghchi held a phone call to discuss efforts to revive negotiations and return to the diplomatic path. Araghchi briefed Abdelatty on Iran's view of ongoing developments, the course of negotiations, and their challenges, according to an Egyptian Foreign Ministry statement reported by Lokmat Times.

Under the US-Iran memorandum of understanding signed on June 18, negotiations were scheduled to begin within 60 days, but the talks' fate remains unclear after renewed escalation over the Strait of Hormuz.

Broader regional tensions

The warning came amid wider regional tensions. An Israeli drone strike on a vehicle in the Syrian village of Beit Jin wounded one person on Saturday, according to Syrian state news agency SANA. The Israeli military said it targeted "a terrorist who advanced terror attacks in final stages of preparation," as reported by multiple outlets. Syria called the strike a flagrant violation.

An Israeli strike on a house in central Gaza killed one Palestinian and wounded another, according to health officials at Al-Aqsa Martyrs Hospital. Israel said it targeted Sharif al-Hasanat, a Hamas commander who it said advanced terror attacks and took part in efforts to restore Hamas' underground infrastructure.

US Ambassador Tom Barrack said Israel "still" occupies the Golan Heights in violation of UN resolutions. Israeli Defense Minister Israel Katz said Barrack's remarks were "full of inaccuracies and positions that contradict Trump's own position," according to Business Standard.

Rezaei accused the US of increasing global nuclear insecurity with months of war, saying countries see that participating in international monitoring efforts, as Iran has done, is no protection against attack. He also warned the US against sending more military personnel to the region.

Perspectives

Iran: Iranian officials, including Rezaei, characterize the US economic campaign as aggression and frame Iran's actions as defensive retaliation. Rezaei has said Iran has no trust in the United States and that Washington should change its policy and take practical measures to implement the memorandum of understanding.

United States: Trump and Treasury Secretary Bessent frame the sanctions as necessary to isolate Iran and prevent it from obtaining nuclear weapons. Trump pledged "tremendous economic consequences" for any country providing Iran a lifeline.

Egypt: Egypt is urging both sides to return to the diplomatic path, with Foreign Minister Abdelatty stressing the importance of freedom of navigation and the security of Gulf states.

Analysts: Hamidreza Azizi said Tehran appears to be trying to establish deterrence at an earlier stage, with emerging elements of preemption and disproportionate retaliation. Simon Mabon of Lancaster University said Gulf countries cannot change geography and do not want instability from the fall of the Islamic Republic. Trita Parsi of the Quincy Institute said confidence in diplomacy remains low, but no nation can afford another long war, and global oil inventories are at a much lower level.