Iran dismisses US economic threats, and other developments in the Middle East

On 21 August 2026, Iran dismissed new US economic threats, and Iran's president, Pezeshkian, called for an end to the war with the US while Tehran is in a position of power and strength. The US Treasury chief had announced what he called the 'toughest sanctions' on Iran. Iran vowed a 'devastating' response, its foreign minister said the new US pressure campaign is 'bound to fail', and a top Iranian official said the focus on economic warfare shows the US has failed militarily.

The US urged China and others to back the sanctions. China said 'sanctions and pressure' on Iran are not a solution, called unilateral sanctions illegal, and urged negotiations. Russia said Moscow is not pressuring Iran to resume talks and called the US the aggressor in the war. In Washington, a Democrat on the Armed Services Committee said there was 'no strategy from Day One', and the Washington Post wrote that Trump is increasingly lashing out at allies as victory in the Iran war proves elusive.