Iran vows retaliation as US expands sanctions

Iran has vowed to retaliate after the US expanded economic sanctions, with Tehran expressing confidence that major trading partners will resist Washington's pressure campaign. US Treasury Secretary Scott Bessent announced the measures on Monday but stopped short of the most punishing sanctions, saying countries that continued trading with Iran risked being forced out of the dollar-based financial system. New sanctions were placed on 60 individuals, entities and vessels, but did not include Chinese financial institutions suspected of facilitating Iran's oil trade. Iranian officials threatened a military response and further reduction in Gulf oil exports. The war has degraded Iran's conventional military but preserved missile and drone capability. Oil prices fell over US$2 a barrel despite the announcement.