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Sanctions and sovereignty clash
Iran’s Foreign Ministry spokesman Esmaeil Baghaei attacked the United States’ planned sanctions as “an assertion of extraterritorial sovereignty” over United Nations member states, framing the move as “economic warfare” against Tehran.
““The United States' declaration of new economic sanctions on Iran is far more than continued unlawful 'economic warfare' against a single country,””
Baghaei’s remarks came as U.S. Treasury Secretary Scott Bessent told CNBC that the Trump administration’s plan to “create the greatest coordinated economic isolation in the history of the world” against Iran, and said he would hold a news conference on Monday to “talk about exactly what we're going to do.”
The dispute unfolded alongside U.S. President Donald Trump’s threat that the U.S. would launch what he called the “most crushing economic operation ever taken against any country” against Iran, with Trump also threatening severe financial penalties on any nation that helps Tehran evade sanctions.
CNBC reported that shipping through the Strait of Hormuz remained a fraction of its levels before the U.S. launched its war against Iran on Feb. 28, with negotiations to reopen the strait stalled and Kpler data showing 10 crossings on Monday and two transits on Sunday.
In parallel, Iranian President Masoud Pezeshkian described Tehran’s June 17 memorandum of understanding with the U.S. as a victory for the Islamic Republic, saying “it is better to end the war today” when Iran is “in a position of power and dignity.”
Trump’s pressure, Iran’s rebuttal
Iran told Al Jazeera that the impending U.S. sanctions amount to “complete erosion of sovereignty,” with Baghaei writing on X that the U.S. announcement was “an assertion of extraterritorial sovereignty” against the UN’s member states.
Baghaei also argued that “No State may lawfully compel foreign banks, enterprises, or airports - each subject to the exclusive jurisdiction of its own sovereign - to renounce lawful commerce with a third State,” linking the sanctions to a broader challenge to international order.
Al Jazeera reported that U.S. Treasury Secretary Scott Bessent doubled down on Thursday, saying the new sanctions regime would “collapse” Iran and that other countries are “either with us or against us.”
The same Al Jazeera account said peace talks with Tehran have sputtered out while the U.S. Navy maintained its blockade against Iran’s ports, and it added that the Strait of Hormuz remained bottled up with thousands of seafarers stranded on hundreds of vessels.
Al Jazeera also quoted Trump telling reporters Friday that his government is “seeing what happens” in the conflict, and it said Iran granted permission for several Iraqi oil tankers to pass through the strait following repeated requests from Baghdad.
Defense posture and escalation risk
Beyond sanctions rhetoric, Iran International reported that Defense Ministry spokesperson Reza Talaei-Nik said Iran deliberately stopped many public weapons unveilings and military exhibitions to keep new capabilities hidden from adversaries.
“One of the reasons we did not hold a military exhibition on Defense Industry Day last year or this year”
Talaei-Nik told Iran International that “One of the reasons we did not hold a military exhibition on Defense Industry Day last year or this year” was to “surprise the enemy and protect defense information and secrets,” while commanders were still being briefed on ballistic and cruise missiles, drones, and air-defense systems.
Iran International said overall production of weapons and military equipment had doubled over the past year, and it added that Tehran planned to triple weapons production, with increases of four or five times envisaged for some categories.
CNBC reported that oil prices were little changed Friday after Iran’s president indicated Tehran wants the war with the U.S. to end sooner rather than later, and it recorded Brent crude futures adding 61 cents to close at $94.39 per barrel.
In the same CNBC account, Helima Croft of RBC Capital Markets questioned whether more sanctions will change Iran’s behavior, saying Iran “is already one of the most sanctioned countries in the world,” while Tehran appears to believe it can outlast the U.S.