Iran Braces for Economic Fallout as US Threatens New Sanctions

Iran is preparing measures to keep its economy functioning as the United States threatens a new wave of sanctions and maintains pressure on the country amid the ongoing conflict.

US Treasury Secretary Scott Bessent has warned that Washington could impose unprecedented economic restrictions on Tehran, while President Donald Trump has also vowed to increase economic pressure on Iran.

Iranian officials, however, have maintained a defiant position, warning that the country could shift towards offensive military operations while preparing for a possible ground invasion.

The situation has been worsened by the disruption of shipping through the Strait of Hormuz, a vital global energy route. Iran has linked the reopening of the waterway to the lifting of the US blockade, sanctions and military operations, as well as the release of frozen Iranian assets.

To cope with the restrictions, Tehran has sought to reroute imports of food, consumer goods and industrial supplies through land borders with Pakistan and Türkiye, as well as through the Caspian Sea via Russia and Central Asia.

The conflict has also halted Iran’s oil exports, depriving the government of a crucial source of foreign revenue. US officials are reportedly considering additional sanctions on Chinese refineries and financial institutions involved in Iranian oil transactions.

Economists warn that prolonged sanctions and the blockade could deepen shortages of fuel, electricity, gas and other essential goods. Iran was already facing high inflation, weak purchasing power and long-standing economic problems before the latest crisis.

Iranian President Masoud Pezeshkian’s administration has identified market stability, protecting livelihoods and strengthening national resilience as key priorities for the coming two years.

However, economists say lasting economic stability will require both an easing of tensions with the United States and the West and significant domestic economic and political reforms.

The prolonged disruption could also affect the wider global economy, particularly if instability around the Strait of Hormuz continues to disrupt energy supplies and shipping.

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