US sanctions pressure Iran's economy, but Tehran bets on resilience

The US has announced sweeping new sanctions against Iran, calling it an "economic onslaught" targeting financial connections, digital assets, technology, gold, aviation, and shipping. Treasury Secretary Scott Bessent warned that any nation partnering financially with Iran would be isolated. Iran's Economy Minister Ali Madanizadeh dismissed the measures as "the same old talk," stating Tehran was prepared for "every scenario" with plans already in place. The sanctions build on years of restrictions that have reduced oil exports and weakened the rial, though Iran has experience bypassing them via land borders. The effectiveness depends on closing channels involving China, which firmly opposed the sanctions, and Iran's neighbours. The pressure comes amid Iran's economic crisis worsened by US and Israeli air strikes since 28 February, with citizens reporting severe hardship. Iran hopes political costs, including potential oil price spikes before US midterm elections, may limit Washington's resolve.