Ahead of tough new U.S. sanctions, Iran criticizes 'extraterritorial sovereignty'

Iran Objects to Planned U.S. Sanctions, Calls Measures Assertion of Extraterritorial Authority

Iranian Foreign Ministry spokesman Esmaeil Baqaei stated on August 22, 2026, that the United States' planned new economic sanctions on Iran amount to more than continued economic measures against one country. Baqaei described the sanctions as an assertion of extraterritorial sovereignty over every independent member state of the United Nations.

U.S. Treasury Secretary Scott Bessent told CNBC on August 20 that the administration intends to apply sanctions designed to isolate Iran's economy, which he said could reduce the need for large-scale U.S. military operations. Bessent said the United States would seek the broadest coordinated economic isolation in history against Iran and planned to hold a news conference on August 25 to detail the steps. He indicated the administration would inform allies that participation is required.

Vice President JD Vance described economic pressure as the United States' primary instrument in the current standoff. Vance characterized the situation as one in which both sides apply pressure, noting that recent weeks had produced greater effects on Iran than on the United States.

Iranian parliament speaker Mohammad Baqer Qalibaf, speaking in Baghdad on August 21, called for Muslim countries to coordinate responses to sanctions, according to an official summary of his remarks.

The statements followed President Donald Trump's announcement that the United States would carry out what he termed the most extensive economic operation ever directed at any country. Trump said penalties would apply to any nation assisting Iran in evading the measures.

U.S. military strikes on Iran began on February 28, 2026. Shipping volumes through the Strait of Hormuz have remained well below pre-strike levels since that date. Negotiations to restore normal transit have not advanced. Data from the trade intelligence firm Kpler showed ten crossings on August 17 and two transits on August 16.

Brent crude futures rose 61 cents on August 21 to close at $94.39 per barrel. West Texas Intermediate futures increased 23 cents to $87.06. Both benchmarks ended the week more than 5 percent higher following Bessent's remarks.

Iranian President Masoud Pezeshkian referred to a June 17 memorandum of understanding with the United States as a positive outcome for Iran. Pezeshkian stated that ending the conflict while Iran retains its current position would be preferable, according to the state news agency PressTV. The memorandum assigned Tehran responsibility for determining Strait of Hormuz administration through talks with Oman and other Gulf states.

Helima Croft, head of global commodity strategy at RBC Capital Markets, noted that Iran already ranks among the most heavily sanctioned countries. Croft questioned whether additional measures would alter Iranian policy and whether the United States would apply them to China and Russia, Iran's principal partners. She said Tehran appears to assess that it can sustain its position longer than the United States.

The Iranian response and U.S. statements occur against a backdrop of reduced tanker traffic and unchanged oil-price direction on the day of the Iranian Foreign Ministry comments.