US to Announce 'Toughest Sanctions' on Iran as Hormuz Oil Flow Plummets

Iran on Saturday condemned an imminent U.S. announcement of new economic sanctions, escalating tensions as a nearly six-month military conflict continues to severely disrupt global energy markets. The move threatens to place further strain on the Islamic Republic's economy, which is already reeling from the impacts of war and existing trade restrictions.

New Sanctions Imminent

U.S. Treasury Secretary Scott Bessent is scheduled to announce what he has termed "the toughest sanctions in history" at a press conference on Monday, according to reports. The U.S. has specifically urged cooperation from China, which purchased over 80% of Iran's shipped oil in 2025, according to data from analytics firm Kpler.

In response, Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, described the planned measures as an "assertion of extraterritorial sovereignty" with "no foundation in international law." The statement underscores the diplomatic stalemate, with U.S. President Donald Trump stating Friday that while Iran would "love to make a deal," they are not "ready to make the right deal."

Chokepoint for Global Oil

The conflict has brought oil shipments in the Strait of Hormuz, a critical maritime chokepoint, to a near standstill. Tehran has threatened to strike any unauthorized tankers attempting to transit the waterway.

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• Daily oil transit through the strait has fallen to an average of 8 million barrels per day, according to U.S. Energy Secretary Chris Wright.
• This is a sharp decline from the more than 20 million barrels per day that passed through the strait before the conflict, which represented about a fifth of global consumption.
• Ship-tracking data from Thursday showed only four commodity ships sailing the strait, none of which were large crude carriers or liquefied natural gas (LNG) tankers.

Iran has reportedly granted special permission for some Iraqi oil tankers to pass through the strait following requests from Baghdad, state news agency IRNA reported.

Geopolitical Backdrop

The new sanctions threat comes nearly six months after the U.S. and Israel began airstrikes against Iran on February 28. While active fighting has subsided, no peace talks are underway. Iran's armed forces chief, Major General Ali Abdollahi, warned Friday that Iran would respond to threats with "crushing, punishing and devastating responses."

Despite the defiant military posture, Iranian President Masoud Pezeshkian has also called for a diplomatic end to the conflict. "It would be better to end the war today, when we are powerful and have dignity," he was quoted as saying by the ISNA news agency on Friday.