U.S. Hits Iran With New Sanctions; Iran Threatens to Strike Back

Iran vowed retaliation on August 25, 2026, after the U.S. Treasury launched a sanctions campaign called Operation Economic Outcast the day before. Treasury Secretary Bessent called it an "economic onslaught." New rules force foreign companies to choose: do business with the U.S. dollar or trade with Iran. Past actions had already frozen $500 million. Iran has not said how it will respond.