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US-Iran Economic War Raises Gulf Escalation Risks

Sunday, August 23, 2026
Part of: Trump-Era Upheaval Across Markets, Politics, and War (1201 clusters · 18-04-2025 → 24-08-2026) →
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Sources aljazeera.com 3dw.com 2euronews.com 1scmp.com 1timesofindia.indiatimes.com 1
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timesofindia.indiatimes.com

A gray-haired man in a dark suit and red tie stands at a lectern with microphones in an indoor setting, while several people and tableware are visible in the background. A display beside him shows a map graphic labeled “NEW U.S. TERRITORY” and “STRAIT OF HORMUZ.”

Summary

The articles describe a sharp escalation between Washington and Tehran as President Donald Trump pursues an unprecedented campaign of sanctions, economic isolation, and possible naval pressure against Iran, urging other countries to participate. Iranian security chief Mohsen Rezaei has warned that governments supporting the campaign will be treated as enemies and could face retaliatory measures, including attacks on their interests, oil-shipping routes, energy infrastructure, and potentially US businesses. The confrontation is closely tied to the disputed status of the Strait of Hormuz, which Iran says remains closed until Washington changes course, while Trump has provocatively claimed the waterway as US territory despite continued maritime traffic and efforts to establish alternative routes. Although Iranian President Masoud Pezeshkian has defended negotiations and a failed June memorandum as the best path toward peace and economic recovery, diplomacy remains stalled, with Egypt, Oman, Pakistan, and other regional actors seeking de-escalation. China rejects unilateral sanctions, the UAE has suspended economic ties with Tehran, and Gulf and European states are exploring alternate energy and trade routes. The central concern is that economic pressure intended to force Iran back to negotiations could instead trigger attacks on regional infrastructure, disrupt global energy supplies, deepen international divisions, and widen the conflict.

Key Points

  • The United States is preparing a broad economic campaign against Iran, including expanded sanctions, pressure on trading partners, and possibly a naval blockade, with Washington urging governments to choose sides.
  • Iran has threatened retaliatory action against countries supporting the campaign, including attacks on their interests, substitute oil routes, Gulf energy infrastructure, and potentially US companies; Tehran has characterized support for sanctions as an act of war.
  • The Strait of Hormuz remains the main flashpoint, with Iran asserting that it is closed until the US changes its conduct, while Trump has claimed it as US territory and regional actors pursue alternative routes through Oman, Saudi Arabia, pipelines, ports, and rail links.
  • Diplomatic efforts remain unresolved after the June US-Iran memorandum expired, although Iran’s president supports negotiations and Egypt, Oman, Pakistan, and other governments continue trying to revive de-escalation talks.
  • International reactions are divided: China opposes unilateral sanctions, the UAE has suspended financial and economic ties with Iran, and analysts warn that intensified pressure could produce higher oil prices, shipping disruptions, and a wider regional war.

Articles in this Cluster

Iran threatens countries that join US ‘economic D-Day’ | Conflict News | Al Jazeera

This brief Al Jazeera news report concerns an escalation in economic and political tensions between Iran and the United States. Mohsen Rezaei, identified as the secretary of Iran’s Supreme National Security Council, warns that countries that participate in what Tehran considers a US-led economic war against Iran will face retaliatory measures. He describes the anticipated response as “tit-for-tat” action, signaling that Iran intends to answer economic pressure with comparable actions against participating states. The warning follows comments by US President Donald Trump, who threatened to impose or intensify “economic warfare” against Iran. The report frames the exchange as a confrontation in which economic restrictions and other forms of pressure could be used as instruments of conflict. While it refers to countries potentially joining the US effort, it does not identify those countries, specify the measures threatened by either side, or provide details about any new sanctions or policy decisions. The language used by both sides reflects a highly adversarial relationship and suggests that the dispute could expand beyond direct US-Iranian relations if other governments become involved. Rezaei’s statement is presented as a warning intended to deter foreign governments from supporting Washington’s campaign. Trump’s remarks, meanwhile, are described as the immediate context for Iran’s response. Overall, the article is primarily an alert-style account of threats exchanged over economic pressure. It does not offer independent analysis of the likely consequences, explain the legal or financial mechanisms involved, or report on an actual retaliatory action. Its central message is that Iran is warning third countries that participation in US economic measures could make them targets of Iranian countermeasures.
Entities: Iran, United States, Mohsen Rezaei, Iran’s Supreme National Security Council, Donald TrumpTone: urgentSentiment: negativeIntent: inform

Iran warns nearby nations against joining US ‘economic war’ efforts | Conflict News | Al Jazeera

Iran has warned neighboring countries that it will regard them as enemies and target their interests if they participate in a US campaign designed to weaken Iran’s economy. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, delivered the warning in an interview with state broadcaster IRIB, saying Tehran would initially seek negotiations and de-escalation, then attempt to persuade regional governments to distance themselves from Washington. Countries that continued supporting the United States could ultimately face Iranian action. The warning follows a sharp escalation in US economic threats. President Donald Trump said the United States would launch its “most crushing economic operation” against Iran and threatened “tremendous economic consequences” for any country providing Tehran with a lifeline. Treasury Secretary Scott Bessent reinforced the message by saying countries were either “with us or against us.” Rezaei argued that Washington hopes economic pressure will fracture Iranian society and provoke protests that would support US military operations. The broader conflict between Iran, the United States, and Israel has continued since February 28, while negotiations have stalled after a June 17 memorandum of understanding calling for an immediate and permanent end to military operations failed. Control of the Strait of Hormuz remains a major dispute. Iran closed the strategic shipping lane early in the war, causing prices for oil and fertilizer to surge and prompting Middle Eastern countries to seek alternative trade routes. Rezaei warned that Iran could target those substitute oil-shipping routes if regional states joined the US economic campaign. Iran’s Foreign Ministry separately condemned the planned US measures as an assertion of “extraterritorial sovereignty” over UN member states. Reports also suggest Tehran may expand its potential targets beyond the Middle East to US allies in Europe that have supported Trump’s actions.
Entities: Iran, Mohsen Rezaei, Iran’s Supreme National Security Council, Islamic Republic of Iran Broadcasting (IRIB), United States governmentTone: urgentSentiment: negativeIntent: inform

Will Donald Trump’s new sanctions against Iran work? | Donald Trump | Al Jazeera

Al Jazeera’s 27-minute “Inside Story” episode examines whether new US sanctions announced by President Donald Trump can pressure Iran or change the course of the conflict. After nearly six months of war, Washington appears to be shifting its approach from primarily military confrontation toward a major economic campaign. Trump has promised “crushing measures” and described the proposed effort as the greatest coordinated economic isolation in history, while urging other countries to participate. The programme reports that negotiations aimed at ending the war have stalled. The US is therefore seeking broader international cooperation to isolate Tehran economically. Iran, however, has warned that countries joining the campaign will be treated as enemies and has threatened retaliation. The episode also takes place as Iran’s government signals a possible fuel-price increase, adding to domestic economic and political pressure ahead of the new sanctions. Presenter James Bays discusses the likely consequences with three guests: Jamal Abdi, president of the National Iranian American Council; Hassan Ahmadian, a University of Tehran professor and deputy director at the Center for Middle East Scientific and Strategic Studies; and Mark Pfeifle, a former White House deputy national security adviser and president of Off the Record Strategies. Their discussion considers whether sanctions can produce meaningful leverage, how Iran and other countries might respond, and whether expanding the economic conflict could intensify the wider war. The central question is whether coordinated sanctions will compel Iran to negotiate or instead deepen confrontation between Tehran, Washington and countries that choose sides.
Entities: Donald Trump, United States, Iran, Tehran, James BaysTone: analyticalSentiment: neutralIntent: analyze

Iran: President defends US deal as best option for peace

Iranian President Masoud Pezeshkian has defended an expired memorandum of understanding with the United States, describing it as the best available route to end the prolonged confrontation between Tehran and Washington. He said the conflict currently exists in a state of “neither war nor peace” and that members of Iran’s Supreme National Security Council agreed the arrangement served the country’s dignity, wisdom and national interest. Pezeshkian rejected the idea that the agreement represented capitulation, emphasizing that Iran’s supreme leader determines national policy and that the government would follow that direction. The memorandum, signed by US President Donald Trump in June, established a 60-day framework for ending the US-Israeli-led conflict and addressing Iran’s nuclear ambitions. The deadline passed without an apparent compromise. The status of the Strait of Hormuz also remains unresolved after Iran closed the strategically important waterway in response to attacks, disrupting global economic activity. Pezeshkian argued that Iran must move beyond the stalled conflict in order to attract foreign investment. He said economic capital is highly sensitive to risk and that Tehran must remove uncertainty from the country. At the same time, Iran announced that Pakistan’s military chief, Asim Munir, would visit Tehran as part of Islamabad’s efforts to promote regional peace and security. Pakistan had helped facilitate the US-Iran memorandum. However, the diplomatic signals were accompanied by threats from Mohsen Rezaei, the new hardline leader of Iran’s Supreme National Security Council. Rezaei warned neighboring states not to assist the US war effort and threatened retaliation against oil-shipping routes in the Persian Gulf if those countries joined what he called an economic war against Iran. The article therefore presents a mixed picture: Tehran publicly supports negotiations and de-escalation while hardliners continue to warn of severe regional consequences.
Entities: Masoud Pezeshkian, Donald Trump, Mohsen Rezaei, Asim Munir, IranTone: analyticalSentiment: negativeIntent: inform

Iran warns countries against joining US 'economic war'

Iran has warned governments not to participate in the United States’ campaign to economically isolate Tehran, saying countries that impose restrictions will be treated as enemies. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, issued the warning on Iranian state television and threatened a major retaliation if US President Donald Trump takes further action, describing the potential confrontation as being “like an earthquake.” The warning follows Trump’s announcement of what he called the “most crushing economic operation” against Iran. Washington is urging other countries to support expanded sanctions and economic pressure. US Treasury Secretary Scott Bessent is expected to provide additional details about the measures and has characterized the effort as the largest coordinated economic isolation campaign in history, presenting governments with a choice between supporting the United States or opposing it. China, one of Iran’s principal strategic partners, has rejected the campaign, arguing that sanctions and pressure will not resolve the dispute. Chinese Foreign Ministry spokesperson Lin Jian called on all sides to pursue political and diplomatic solutions. The United Arab Emirates, however, announced that it would suspend financial and economic ties with Tehran until further notice, citing regional escalations that threaten peace and security. Talks between Washington and Tehran remain suspended after nearly six months of war, which the article says began when the United States and Israel launched airstrikes against Iran on February 28. Iran has faced almost five decades of economic sanctions since the 1979 Islamic Revolution. The latest developments raise the prospect of broader international economic divisions and further escalation between Iran, the United States, and their allies.
Entities: Iran, United States, Tehran, Mohsen Rezaei, Supreme National Security CouncilTone: urgentSentiment: negativeIntent: inform

Trump claims Hormuz on Truth Social, Rezaei says 'shut until US changes' | Euronews

The article reports an escalating dispute between the United States and Iran over the Strait of Hormuz, a vital maritime corridor through which roughly one-fifth of the world’s crude oil and liquefied natural gas exports passed before the war. US President Donald Trump renewed his claim that the strait could become “new American territory,” reposting a map on Truth Social that depicted the waterway in that way. Trump had previously shared the map on 18 August and first proposed treating the strait as US territory at a New York rally on 15 August, while also claiming that the United States fully controls the passage. Iran disputes Washington’s position and says it has closed the strait since the conflict began. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, told Iranian state television that the waterway would remain closed until the United States honours its commitments and changes its behaviour. He also warned countries against joining US economic sanctions, saying states that participate in restrictions on Iran would be treated as enemies. Rezaei threatened to harm the interests of countries that refuse to distance themselves from Washington and warned that Iran could target US oil companies and other businesses if economic sanctions are imposed. Other Iranian officials responded sharply to Trump. An Iranian account described California as “new land belonging to Iran,” while Deputy Foreign Minister Kazem Gharibabadi said Trump’s “illusions” about Hormuz would soon be corrected. The dispute follows a June memorandum of understanding intended to end the war and lead to a broader agreement. That process later stalled over implementation and navigation arrangements in the strait. Talks involving Iran and Oman on regulating maritime traffic have continued but have not produced a breakthrough, leaving the waterway’s reopening and the risk of wider escalation unresolved.
Entities: Donald Trump, Mohsen Rezaei, Kazem Gharibabadi, United States, IranTone: urgentSentiment: negativeIntent: inform

Why Trump’s economic pain could spark more Iranian attacks on Gulf nations | South China Morning Post

The article examines how President Donald Trump’s planned escalation of economic pressure against Iran could provoke further Iranian military action across the Gulf. The United States is preparing new sanctions, a naval blockade and measures targeting Iran’s trading partners, with Treasury Secretary Scott Bessent expected to announce details of the strategy. The campaign could affect countries including China, India, Turkey and the United Arab Emirates, shifting the conflict from military exchanges to broad economic isolation. The strategy is intended to force Tehran to accept an agreement ending the war on US terms. However, the article argues that Iran’s Islamic Revolutionary Guard Corps may be able to withstand the pressure and has multiple options for retaliation. The Guard has claimed control of the Strait of Hormuz and launched attack drones across the Gulf, demonstrating its capacity to threaten regional security and energy supplies. Analysts cited in the article warn that intensified sanctions and economic restrictions could lead Iran to strike Gulf energy infrastructure. Such attacks could disrupt oil supplies, drive prices higher and increase the financial cost of the US campaign. By creating economic pain for Washington and its partners, Tehran might hope to force Trump to change course or retreat. Nate Swanson of the Atlantic Council said Iran would likely retaliate if the new pressure campaign proved effective, arguing that Tehran may see no alternative. The article also notes that since US and Israeli attacks began on February 28, Iran has continued to absorb air strikes, sanctions and a naval blockade while retaining the ability to strike back. The central concern is that Trump views the measures as a new phase of the war, while Iran may interpret them as another escalation requiring a military response.
Entities: Donald Trump, Iran, Islamic Revolutionary Guard Corps, United States, IsraelTone: analyticalSentiment: negativeIntent: analyze

‘Will target their interests’: Iran warns neighbours against supporting US economic pressure tactics - The Times of India

Iran has warned neighbouring countries that they could face retaliation if they support the United States in intensifying economic pressure on Tehran. Mohsen Rezaei, Iran’s newly appointed head of the Supreme National Security Council, said countries cooperating with Washington’s campaign would be regarded as enemies and that Iran could target their interests. He specifically warned that Iran might attack oil-shipping routes outside the Strait of Hormuz if neighbouring states became involved in what he called an economic war against Iran. Rezaei’s comments followed US President Donald Trump’s pledge to impose an “unprecedented” level of economic warfare and isolation on Iran, which has been under sanctions for years. In an interview broadcast by Iranian state television, Rezaei said Tehran would respond to any US action “in a seismic manner.” He also cautioned Washington against deploying additional military personnel to the region, accused the US of worsening global nuclear insecurity and said Iran would revise its diplomatic approach while developing new capabilities for a possible future conflict. The threats were issued as diplomatic and regional activity continued. Egypt’s foreign minister discussed efforts to revive US-Iran negotiations with Iran’s foreign minister. Iraq and Iran also said Tehran had helped some Iraqi oil tankers pass through the Strait of Hormuz. Meanwhile, France and Saudi Arabia were expected to discuss alternative routes around the strategic waterway. The article also notes that Israel had carried out strikes in Syria and Gaza, adding to the wider regional tension. The warning raises concerns about the security of oil transportation and the possibility that economic pressure on Iran could trigger retaliation affecting neighbouring states and major energy routes.
Entities: Iran, Mohsen Rezaei, Supreme National Security Council, United States, Donald TrumpTone: urgentSentiment: negativeIntent: inform

Iranian security chief says support for new US sanctions would be 'act of war' | AP News

The supplied material does not include the body of the Associated Press article. Instead, it consists almost entirely of AP News navigation menus, section links, newsletters, and unrelated headlines. The only article-specific information available is the headline: “Iranian security chief says support for new US sanctions would be ‘act of war.’” Based on that headline, an Iranian security official appears to have warned that backing or supporting a new package of U.S. sanctions against Iran would constitute an act of war. The wording suggests that Tehran views the proposed sanctions as a hostile escalation rather than as ordinary economic or diplomatic pressure. The article is presented within AP’s World and Middle East coverage, indicating that the statement is connected to broader regional tensions and the ongoing Iran-related conflict environment. However, the supplied text does not identify the Iranian official, explain which sanctions are under consideration, describe who would be targeted, or provide the circumstances in which the warning was issued. It also does not include the U.S. government’s response, reactions from other countries, or independent analysis of the potential consequences. There is no article text from which to determine whether the warning reflects an official policy decision, a rhetorical threat, or a response to a specific action by Washington. A complete and reliable summary would require the article body. The conclusions above are limited strictly to the headline and the small amount of related AP labeling included in the provided material; unrelated headlines and navigation content have not been treated as evidence about this story.
Entities: Iran, United States, Iranian security chief, New U.S. sanctions, Support for sanctionsTone: urgentSentiment: negativeIntent: inform

Donald Trump shares image calling Hormuz 'new US territory'; Iran says strait 'closed' - The Times of India

The article reports an escalating dispute between US President Donald Trump and Iran over the strategically important Strait of Hormuz. Trump shared an image on Truth Social labeling the waterway “NEW US Territory,” repeating a post he had made on August 18. The article also recalls his August 14 remarks that he would soon declare the strait a US territory. Iranian official Mohsen Rezaei, secretary of the country’s Supreme National Security Council, responded that Iran considered the strait closed and would not reopen it unless the United States changed its conduct and fulfilled its commitments. Quoting Iran International, the report says Rezaei rejected resolving the dispute through words or negotiations alone and insisted that Washington must take action. The article highlights a contrast between Iran’s official declaration and activity in the waterway. According to UK maritime trade operations data cited by the New York Post, nearly 200 ships crossed the strait during the previous week, compared with approximately 150 the week before and around 40 two weeks earlier. Maritime intelligence company Kpler separately reported that more than 80% of liquid cargoes moving through the strait in the preceding two weeks either used an Omani route supported by the United States and authorized by the International Maritime Organization, or traveled without openly identifiable tracking. Rezaei also said Iran had reached an agreement with Oman on a “middle route” through the strait, although the two countries had not yet finalized a joint statement. Overall, the report portrays a tense geopolitical standoff marked by conflicting claims about the waterway’s status, continued maritime traffic, and efforts to establish alternative routes.
Entities: Donald Trump, Iran, United States, Strait of Hormuz, Truth SocialTone: analyticalSentiment: negativeIntent: inform

Iran war live: Tehran warns neighbours against joining US economic war | Conflict News | Al Jazeera

This live update on the Iran war and related regional tensions reports developments involving cyberattacks, the Strait of Hormuz, Israel’s occupation of Palestinian territories, Gaza’s humanitarian crisis, and shifting international policies. It says hackers affiliated with Iran shut down a relatively small British power plant for four days in July, during a wider period of attacks on US water infrastructure. The British government has not identified the facility, citing security concerns. French President Emmanuel Macron is due to host Saudi Crown Prince Mohammed bin Salman in Paris, where they are expected to discuss alternative trade and energy routes to reduce dependence on the Strait of Hormuz. Proposed measures include expanding the use of Omani ports, increasing Saudi and regional pipeline capacity, and developing new rail links. Former US diplomat Joey Hood disputed President Donald Trump’s claim that the strait is US territory, while warning that Iran’s Islamic Revolutionary Guard Corps can threaten commercial shipping with drones and missiles. Trump repeated his claim in a Truth Social post. The update also reports that the United States is preparing to remove Syria from its State Sponsors of Terrorism list. In the occupied West Bank, a Palestinian commission says 592 Israeli settlements and outposts are home to more than 700,000 settlers, while another figure cited by the commission places the total in the West Bank and East Jerusalem at 780,000. Dutch protesters demonstrated against trade in goods produced in Israeli settlements, as several European countries move toward national bans while the European Union delays a bloc-wide decision. In Gaza, the report describes an acute shortage of burial space after more than 73,000 Palestinians were killed, according to the article, and 40 burial sites were destroyed. Families are reportedly burying victims in gardens, schools, tents, and displacement camps. The update also reports alleged property theft by Israeli settlers near Abu Falah and Israeli military activity in Qalqilya. The excerpt ends with former Israeli diplomat Alon Pinkas arguing that European condemnations do not influence Israel.
Entities: Iran, United Kingdom, United States, French President Emmanuel Macron, Saudi Crown Prince Mohammed bin SalmanTone: urgentSentiment: negativeIntent: inform

U.S.-Iran Live Updates: Iran declares it has won the war as U.S. turns to economic warfare

This live update article describes escalating military, diplomatic and economic tensions in the war between the United States and Iran. Iranian President Masoud Pezeshkian claimed that the world had effectively recognized Iran’s victory and said the conflict should end, while also arguing that the United States had become globally “hated.” Iran separately warned that countries participating in U.S.-led sanctions would be treated as enemies and threatened to harm their interests. A senior Iranian politician also warned U.S. allies in the Gulf—including Qatar, Kuwait and the United Arab Emirates—that they could become targets because of their military and logistical support for Washington. At the same time, Egypt attempted to revive U.S.-Iran diplomacy. Its foreign minister spoke with Iran’s foreign minister about de-escalation, ongoing Iranian-Omani discussions concerning the Strait of Hormuz, and potentially returning to a June memorandum of understanding between Washington and Tehran. Iran also permitted some Iraqi oil tankers to pass through the strait after requests from Baghdad. The article reports that President Donald Trump is seeking an unprecedented campaign of economic isolation against Iran and has called on U.S. allies to participate. China, however, rejected sanctions it described as unilateral and illegal. The conflict has also fueled calls in Europe for a windfall tax on oil companies benefiting from soaring energy profits. Separately, France and Saudi Arabia are exploring alternative energy and trade routes to reduce the impact of the Strait of Hormuz closure, including expanded pipelines, Omani ports and new rail connections. The update also reports an Israeli drone strike in southwestern Syria that wounded at least one person, with Syria accusing Israel of violating its sovereignty and Israel saying it targeted a person preparing terrorist attacks.
Entities: Iran, United States, Masoud Pezeshkian, Donald Trump, Strait of HormuzTone: urgentSentiment: negativeIntent: inform