Iran urges countries not to implement new U.S. sanctions as mediators focus on reopening strait

Iran has sharply criticized recent U.S. sanctions, calling them "state terrorism" and accusing Washington of waging an "economic war" against its population. The move comes as the country grapples with soaring inflation, hitting 66% annually, raising fears among leaders that further financial strain could lead to domestic unrest. Supreme Leader Ayatollah Mojtaba Khamenei, who has remained largely absent from public view since sustaining injuries in an attack on February 28, reportedly banned officials from actions that could undermine social unity. His directive follows concerns that worsening economic conditions might fuel widespread dissatisfaction. The U.S. intensified its economic pressure on Iran following the six-month-old conflict, which began with a surprise attack on February 28 that killed Khamenei’s father. The Trump administration has framed this period as an "economic D-Day," aiming to cripple Iran’s financial infrastructure. Recent sanctions have targeted key sectors, including banking operations involving Egyptian entities. A U.S. official confirmed to Reuters that the administration plans to restrict Egypt’s Banque Misr UAE branches from conducting business with Iran, effectively blocking their access to U.S. financial systems. This measure is part of broader efforts to isolate Iran economically and deter foreign involvement in its financial affairs. In addition to these restrictions, the U.S. Treasury has sanctioned an entity based in Hong Kong and an individual associated with Iran’s Bank Melli. These moves signal a continued push to disrupt Iran’s financial networks globally. Despite these actions, the U.S. has thus far avoided directly penalizing countries that engage with Iran, instead issuing warnings about potential secondary sanctions. Iran’s Foreign Ministry reiterated that all nations must adhere to international law and refrain from enforcing U.S. sanctions, branding such compliance as an act of complicity in what it describes as an illegal imposition of American will on sovereign states. Iran has also accused the U.S. of committing a "crime against humanity" by endangering the lives and well-being of its citizens. The country’s leadership has called upon the international community and global institutions to uphold legal principles and resist what they perceive as unilateral economic aggression. Khamenei emphasized the need for the government to tackle pressing economic issues, including rising inflation, unemployment, and market instability, to prevent further deterioration of public morale. Efforts to de-escalate tensions have included diplomatic initiatives aimed at resolving the ongoing dispute over the Strait of Hormuz, a critical waterway handling 20% of global oil shipments prior to the conflict. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani has advocated for restoring open shipping through the strait, a proposal that aligns with Iran’s interest in easing regional tensions. During recent discussions in Tehran, Al Thani underscored the significance of reverting to pre-war conditions, signaling a willingness to mediate between conflicting parties. Iran’s Foreign Minister Abbas Araqchi welcomed the dialogue with Qatar and reiterated calls for the U.S. to cease both military and economic pressures. He argued that resuming negotiations is feasible if the U.S. recognizes that coercive tactics are ineffective. Araqchi’s remarks reflect a broader strategy within Iran’s leadership to leverage diplomatic channels to counterbalance Western influence and secure a more favorable geopolitical position. Despite these diplomatic overtures, the situation remains precarious. The initial ceasefire agreement brokered by Qatar and Pakistan in June collapsed due to unresolved disputes over the Strait of Hormuz. As the conflict drags on, Iran continues to assert its leverage by threatening to disrupt maritime traffic through the strait, contributing to volatile oil prices and intensifying regional uncertainty. With economic hardship mounting domestically and international mediation efforts faltering, the path toward resolution appears increasingly uncertain.