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Iran says it will retaliate against countries that cooperate with US sanctions

The dispute comes as Iran’s oil shipments to Asia have already nearly stopped due to a US naval blockade, pushing cargo costs to the highest levels in years.

Reported · Written up by our desk · Trade & Tariffs

Iran has vowed to retaliate against any country that cooperates with fresh US sanctions targeting Tehran, according to the Guardian Economics. The outlet says the White House believes the Iranian economy is again at risk of collapse, and points to the US plan to use so-called secondary sanctions.

The United States has said it will impose sanctions on any country or entity that trades with Iran, raising questions about whether major trading partners, including India, China, and Russia, view the threat of US reprisals as credible. The Guardian Economics also highlights that the US stance will be tested by how continued commerce might be judged against potential consequences for those countries’ economies.

Ahead of the latest US announcement, the United Arab Emirates, described as Iran’s biggest trading partner in the Middle East, said it would end all trade with Iran. Tehran believes that step was coordinated with Washington, and the report frames the move as part of an effort to limit Iranian access to external markets.

The outlet notes that China has long been a major buyer of Iranian oil, and that in May the US threatened sanctions on Chinese refiners and the banks funding them. It adds that Iran’s oil shipments to Asia are already all but ended because of a US naval blockade, with cargo costs driven to the highest levels in years.

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