Sanctions and fuel pressure
In Tehran, long queues formed at petrol stations after the US measures, with AFP reporting the queues across the city on Tuesday.
US Treasury Secretary Scott Bessent outlined plans for what he called the “economic asphyxiation” of Iran, saying the objective was to “sever every economic lifeline that sustains this tyrannical regime”.
Iranian officials and residents linked the new pressure to uncertainty over fuel availability and prices, while one Tehran property agent, Mehdi Yazdian, said, “Naturally, sanctions affect people’s lives.”
Operation Economic Outcast
The sanctions were framed as part of the Trump administration’s “Operation Economic Outcast” plan, described as an attempt to force Iran to negotiate an end to its nuclear program and to target countries that help Iran evade sanctions.
Treasury Secretary Scott Bessent said the campaign’s objective is to “sever every economic lifeline that sustains this tyrannical regime,” while Al Jazeera reported the Treasury imposed new sanctions on nearly 60 individuals and entities.
Jorge Leon, senior vice president and head of geopolitical analysis at Rystad Energy, said the market’s muted reaction showed uncertainty about whether Washington would enforce secondary sanctions against Iran’s remaining trading partners.
Leon also said, “China is the key,” adding that “Iranian crude exports have already fallen sharply because of the blockade,” and that Beijing is “essentially the only significant buyer left.”
Retaliation and wider effects
Iran’s Economy Minister Ali Madanizadeh rejected the measures, saying, “US sanctions against us are not new. We have programmes to counter American sanctions, and Washington cannot achieve its goals by severing the arteries of our economy,” quoted by Fars News Agency.
In parallel, The National reported oil prices slid more than 3 per cent on Tuesday, with Brent down 3.1 per cent to $89.31 a barrel and West Texas Intermediate down 3.34 per cent to $82.17 per barrel.
The National also reported that Iran’s Supreme National Security Council Secretary Mohsen Rezaei said Tehran could halt all oil exports through the Strait of Hormuz if the US proceeded with its plan, adding to oil market volatility as strikes on vessels continued in the key waterway.