Pakistan’s army chief traveled to Tehran on Monday on a mediating mission as the United States prepared to unveil what Treasury Secretary Scott Bessent called the greatest financial offensive ever marshaled against a single country.
Bessent is scheduled to detail the new measures at a press conference Monday afternoon, targeting Iran’s trading partners nearly six months into its conflict with the United States and Israel. In an opinion piece published in the Financial Times on Sunday, Bessent described the coming announcement as an economic D-Day, warning that nations continuing to engage with Iran’s economy through what he called appeasement should consider the consequences of doing so.
Iran dismissed the threat and warned it would halt all oil exports from the Gulf if what it called the economic war continues. Iranian authorities also renewed warnings to shipping companies against transiting the Strait of Hormuz without permission, listing 45 vessels it said had violated its rules and threatening retaliation against any ship-to-ship transfers involving them.

What We Know So Far
Pakistani army chief Asim Munir, who has built a personal relationship with President Donald Trump, arrived in Iran for talks Monday, according to Iranian media. Pakistan described the visit as part of its effort to promote regional peace and stability, and a Pakistani source said Munir was expected to meet with people close to Iran’s supreme leader. Two Pakistani sources said Trump called Munir last week, with one saying the central request was to help bring Iran back to the negotiating table.
The U.S. and Iran have not struck each other’s militaries directly in recent weeks, though the last official face to face talks between the two sides took place in June, and attacks on vessels in the Strait of Hormuz have continued since then. A projectile struck a tanker west of the Saudi port city of Yanbu in the Red Sea on Monday, sparking a fire on the main deck, according to shipping monitors from the United Kingdom Maritime Trade Operations, who did not identify who launched the projectile. Iran’s Houthi allies said last month they would block Saudi oil exports diverted to the Red Sea specifically to avoid the Strait of Hormuz.
Iran’s currency, the rial, hit a new record low Monday, trading about 25 percent below its January level, as traders anticipated higher prices if tighter sanctions further restrict the country’s export capacity. The currency’s earlier slide had already prompted protests in January that were violently suppressed.
Iran’s Deputy Foreign Minister Kazem Gharibabadi dismissed the latest U.S. moves, which Washington has said are intended to bring down the Iranian government, saying previous such declarations from the United States had ultimately come to nothing. China’s foreign ministry separately said sanctions and pressure tactics do not work and that Beijing would do what is necessary to protect its own interests, after Bessent had urged China, long the largest buyer of Iranian oil, to cooperate with the U.S. effort. A U.S. blockade of Iranian ports renewed in mid-July has already cut Iranian oil flows to China.
What Authorities Are Saying
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, warned Sunday that continued economic pressure would prompt Iran to halt oil exports entirely, both through the Strait of Hormuz and from anywhere in the Persian Gulf, and said Iran would treat any country’s participation in or support for the U.S. economic campaign as an act of war.

Iran’s Foreign Ministry spokesperson, Esmail Baghaei, said Monday that Tehran would respond harshly to expanded sanctions, including measures targeting countries it views as cooperating with Washington. “Any escalation of this situation will undoubtedly bring about consequences,” Baghaei said. “Our hands are not tied.”
Iranian officials who spoke with Reuters, while maintaining a defiant public posture, privately expressed concern that further economic punishment could deepen hardship, reignite unrest and further erode the Islamic Republic’s legitimacy.
Why This Matters
The standoff centers on the Strait of Hormuz, through which about a fifth of the world’s traded oil passed before the war began nearly six months ago. Iranian attacks and threats have severely disrupted traffic through the waterway, and the U.S. has not yet succeeded in dislodging Iran’s grip on the strait despite months of pressure. Iran has maintained a consistent set of demands for reopening it fully, including lifting the U.S. naval blockade, withdrawing American forces from the region, and securing reparations for war damages, while separately pursuing talks with Oman on jointly managing the waterway regardless of whether a broader deal with the U.S. materializes.
Iran entered the conflict already facing high inflation, energy shortages and deep structural economic weaknesses, and now must contend with disrupted trade, lost production and the cost of rebuilding infrastructure damaged during the war. Thousands of people have died since the U.S. and Israel began strikes on February 28, most of them in Iran and Lebanon, a campaign that degraded much of Iran’s conventional military capacity and killed the country’s then supreme leader, Ayatollah Ali Khamenei, while leaving the true state of Iran’s nuclear program still unknown to American and Israeli officials.
Despite that damage, Iran has retained enough missile and drone capability to strike its Gulf neighbors and bring shipping through the Strait of Hormuz to a near standstill, pushing up global fuel prices in the process. Sanctions have historically driven up basic goods prices inside Iran, though the country’s economy has shown some adaptive capacity over years of prior sanctions, developing new trading partners and domestic industries, an adaptability that will likely be tested further by the scale of measures Bessent has promised.
Pakistan’s mediating role adds a notable new dimension to the diplomatic landscape, given Munir’s direct relationship with Trump and Pakistan’s stated interest in regional stability, though it remains unclear whether Islamabad can meaningfully influence Iran’s position given the entrenched demands on both sides.
What Happens Next
Bessent’s press conference Monday afternoon is expected to detail the specific measures included in the new sanctions package, which officials have suggested will target not only Iran directly but also countries seen as continuing to engage with its economy. Oil prices eased Monday after two weeks of gains, as investors took profits ahead of the announcement.
Whether Munir’s mediation trip yields any movement toward renewed formal talks between the U.S. and Iran remains uncertain, particularly given Iran’s continued insistence on its full set of preconditions for reopening the Strait of Hormuz. With Iran’s currency at a record low and its economy under mounting strain, the coming weeks are likely to test whether economic pressure alone can shift Tehran’s position, or whether it instead hardens Iran’s resolve as officials have suggested privately they fear domestically.
Reporting drawn from Reuters and the Associated Press






















