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Middle East war: US readies Iran sanctions as Tehran threatens Gulf oil

Iran faces expanded US pressure while Gulf oil markets brace for potential shocks

Last updated: August 24, 2026 | 08:59

Karishma H. Nandkeolyar, Assistant Online Editor ; Jay Hilotin, Senior Assistant Editor and Balaram Menon, Senior Web Editor

US-Israel-Iran war

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Iranian former chief of the Revolutionary Guards Mohsen Rezaei talks to the media

AFP

The Middle East war enters another tense day as Washington prepares new sanctions targeting Iran’s trading partners and Iranian security chief Mohsen Rezaei threatens to halt Gulf oil exports if US economic pressure continues. Rezaei also warned that countries supporting the US measures would be treated as participating in an “act of war”. Meanwhile, fewer than 20 commodity vessels crossed the Strait of Hormuz over the weekend, according to shipping data, highlighting continued disruption to the vital global energy route. Pakistan’s army chief is also due in Tehran on Monday as regional governments continue efforts to ease tensions. Read on for the latest developments:

08:59 AM, 24 August 2026

Oil falls as Trump pledges economic war on Iran

Oil prices fell on Monday as investors braced for details of a US plan to isolate the Iranian economy that President Donald Trump billed as the "most crushing" financial operation ever against Tehran.

Asian stocks were mostly down in early trading, with South Korea's tech-rich Kospi falling 1.4 percent after Samsung Electronics said it spent a massive $80 billion to buy back its own shares following weeks of turbulent trading.

05:02 AM, 24 August 2026

Iran touts regional security bloc, alternative trade to blunt US pressure

Iranian Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf sarcastically derided the economic and foreign policy strategies of the US, asserting that Iran will bypass these "unjust sanctions" by deepening economic ties with neighbouring countries and moving toward bilateral trade using national currencies rather than the US dollar. He also announced that Tehran has already received "numerous messages" from neighbouring countries regarding a new, independent regional security order that bypasses US influence entirely.

Iran is also trying to link security with trade. Ghalibaf's latest statement specifically mentioned economic cooperation alongside security arrangements.

Tehran wants neighbouring states to have an economic stake in keeping regional trade, energy flows and transportation networks functioning, of which the proposed regional approach to the Strait of Hormuz is the foremost example.

Oman has proposed a regional management system involving Iran and other parties, with voluntary fees for navigation and safety services, modeled partly on arrangements around the Strait of Malacca, Reuters reported.

08:47 AM, 24 August 2026