Iran has vowed to retaliate against expanded US sanctions, with its economy minister claiming Tehran has a two-year plan in place to withstand the pressure and warning "we know how to play the game". The threat follows US Treasury Secretary Scott Bessent's unveiling of measures he described as "economic D-Day", designed to sever Iran's financial ties abroad, raising fears of further escalation in an already tense regional conflict rather than a return to negotiations.

The US Treasury imposed what it called the toughest sanctions in history on 60 individuals, entities and vessels, though it stopped short of targeting Chinese financial institutions suspected of handling Iran's oil trade and did not name which countries risked being cut off from the dollar system. Iranian Economy Minister Ali Madanizadeh said Tehran was "fully prepared" and claimed China and Russia had not accepted the measures, while the rial fell to a record low. Iranian officials, including a Revolutionary Guards spokesman and former commander Mohsen Rezaei, warned of possible military retaliation and threatened to halt oil exports through the Strait of Hormuz and the Persian Gulf entirely.