How could the economic conflict between the US and Iran play out?

Iran has vowed to retaliate against expanded US economic sanctions that the Americans said would cut off Iran's economic ​lifelines, with Tehran expressing confidence that major trading partners would resist Washington's pressure campaign.

US Treasury Secretary Scott Bessent on Monday unveiled measures aimed at further isolating Iran, but stopped short of the ‌most punishing sanctions, saying countries that continued trading with Iran risked being forced out of the dollar-based financial system.

The widening US sanctions The US Treasury Department said in a press release that the new sectoral sanctions determinations target five critical sectors – digital assets, technology, gold, aviation and shipping – that the US says Iran has relied on to prop up its economy.

Read more: US threatens 'economic D-Day' sanctions on Iran The measures marked the beginning of "a sustained and systematic campaign to close every financial resource" that supports Iran, the department said.

It added that "any entity that facilitates money laundering or sanctions evasion on behalf of Iran risks being cut off from the US financial system." The department is expanding the categories of "Iran-related conduct" that the US might sanction in the future, and said "every country will be given a defined timeline to shut down the Iran-related activity" the US has identified.

Meanwhile, the department sanctioned nearly 60 entities, individuals and vessels in multiple jurisdictions that is said enable Iran's activities, including illicit nuclear and missile technology procurement and oil-revenue generation networks.

It also suspended several general licenses that previously authorized certain remittance payments to Iran and Iranian access to the US cultural and academic system, and released additional guidance on the sanctions risks associated with complying with Iranian demands regarding shipping in the Strait of Hormuz.

Bessent also disclosed that US President Donald Trump has been calling world leaders with specific requests to cease their interactions with Iran.

Iran strikes a defiant tone Iranian Economy Minister Ali Madanizadeh said Iran is fully prepared for the US sanctions, which cannot cut off Iran's financial lifelines.

"Naturally, the enemies intend to launch an economic terrorist attack on us, but we also have our own tools and know how to play the game.

Our defense is no longer so defensive; the enemies should wait for an attack," ​Madanizadeh told state television.