Iran condemns new US sanctions as ‘state terrorism’ amid economic strain

Tehran, Iran. Iran condemned new US economic sanctions as “state terrorism” and a “crime against humanity”, as its leadership warned against actions that could harm social cohesion amid concern that mounting financial pressure could trigger unrest.

Tehran, Iran. The measures come six months into the war, with negotiations at an impasse and the standoff over the Strait of Hormuz remaining the conflict’s biggest unresolved flashpoint.

US sanctions drive

President Donald Trump’s administration has stepped up efforts to cripple Iran financially through what it has described as an “economic D-Day”.

Washington has warned countries to end business ties with Iran or face secondary sanctions, although the Treasury Department stopped short of imposing penalties.

The sanctions campaign adds pressure to Iran’s war-battered economy, where annual inflation reached 66 per cent last month.

Iranian response

Iran’s foreign ministry said on Friday that all countries were obliged under international law to refrain from implementing US sanctions against Tehran.

It said participation in the sanctions amounted to complicity in imposing one state’s unlawful will on independent states. The ministry described the new measures as a “crime against humanity” that placed the health and livelihoods of millions of civilians at serious risk, and called on other countries and United Nations bodies to uphold the rule of law.

Warning on social cohesion

Supreme Leader Ayatollah Mojtaba Khamenei said in a written statement on Friday that he had banned officials from “committing anything that harms social cohesion”.

Khamenei, who was injured and has not appeared publicly since the 28 February attack that killed his father, urged authorities to avoid “discouraging statements that weaken national and public motivation”.

He called on the government to seriously address economic and livelihood challenges, including inflation, unemployment, prices and the management of markets for goods and services.

Further planned measures

A US official told Reuters later on Friday that the Trump administration plans to impose restrictions on Banque Misr United Arab Emirates branches for conducting business with Tehran.

The proposed rule, if finalised, would remove Banque Misr UAE’s ability to process transactions through US financial institutions, the official said.

Treasury officials also issued sanctions against an entity based in Hong Kong and an individual linked to Iran’s Bank Melli, according to a notice published on the department’s website.