Iran Threatens to Strike Back After U.S. Hits It With New Economic Penalties

Iran vowed retaliation on August 25, 2026, threatening military action and reduced Gulf oil exports, after the U.S. launched "Operation Economic Outcast." Sanctions are penalties that cut a country off from trade to pressure its behavior. This round widens penalties on Iran's military, weapons buying, and oil sales, extending a 2026 campaign that hit its shadow banking network, 100-plus oil vessels, and proxy funding channels.