Iran Threatens Retaliation as US Expands Economic War

• Iran has warned countries against joining Washington’s new sanctions campaign, saying those that cooperate could be treated as enemies. The threat comes as the United States moves to squeeze Iran’s international economic networks, raising fresh sanctions and financial crime risks for banks, traders and companies with exposure to the country.

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Iran has threatened retaliation against countries that cooperate with a new US campaign aimed at isolating its economy, as Washington prepares what it describes as a major escalation of economic pressure on Tehran.

Mohsen Rezaei, head of Iran’s Supreme National Security Council, warned that countries joining the US sanctions effort would be considered enemies. He also threatened consequences for Gulf states that participate in the campaign.

The warnings came ahead of the latest US sanctions measures announced by Treasury Secretary Scott Bessent, who has described the campaign as an attempt to cut Iran off from its remaining economic lifelines.

The US is targeting international networks connected to digital assets, technology, gold, aviation and shipping, while also threatening secondary sanctions against foreign companies and countries that continue significant dealings with Iran.

The pressure is already being felt inside Iran. The rial has fallen to aroundtwo million to the US dollar, roughly half its value of a year earlier, while inflation and the cost of basic goods continue to put pressure on households. (

Compliance Analysis

For financial institutions, the latest escalation creates a wider sanctions perimeter.

The risk is no longer limited to dealing directly with a sanctioned Iranian entity. Banks, insurers, shipping companies, commodity traders and payment providers may face exposure through intermediaries, vessels, trading companies or financial networks connected to Iran.

Washington has also signalled that foreign businesses continuing to support Iran could eventually face exclusion from the US dollar financial system.

That makes enhanced due diligence, beneficial ownership checks, sanctions screening and transaction monitoring increasingly important for companies with Iran related exposure.

The compliance concern is simple: a transaction may look legitimate on its face while the underlying network creates sanctions exposure.