Iran vows to ignore US sanctions as President Hassan Rouhani says nation faces 'war situation'

The Trump administration on Monday released a list of sanctions against hundreds of entities throughout Iran's economy, promising to exert more pressure on the nation's regime.
"The Iranian regime has a choice, it can either do a 180-degree turn from its outlaw course of action and act like a normal country or it can see its economy crumble," said Secretary of State Mike Pompeo at a press conference.
A second round of punishing sanctions on Iran's energy, banking and shipping sectors went into force overnight on Monday.
"Treasury's imposition of unprecedented financial pressure on Iran should make clear to the Iranian regime that they will face mounting financial isolation and economic stagnation until they fundamentally change their destabilizing behavior," said Treasury Secretary Steven Mnuchin in a statement.
"The maximum pressure exerted by the United States is only going to mount from here. We are intent on making sure the Iranian regime stops siphoning its hard currency reserves into corrupt investments and the hands of terrorists."
Read the full list of sanctioned entities here.

Key Details

  • Sources familiar with the U.S. move said Japan, India and South Korea are among those getting waivers. China, the biggest purchaser of Iranian crude, was in talks for a waiver, while other requests were expected from Taiwan and Turkey.
  • The U.S. warned that it could target the Swift financial messaging network for sanctions if it doesn’t halt transactions with sanctioned Iranian financial institutions.
  • EU, German, U.K. and French officials last week said in a joint statement that they “deeply regret” the U.S. move and vowed to “protect European economic operators engaged in legitimate business with Iran.”
  • Treasury Secretary Steven Mnuchin on Friday said the U.S. is “intent on ensuring that global funds stop flowing to the coffers of the Iranian regime.”
  • Trump said Friday the U.S. is open to reaching a new, more comprehensive deal with Iran that “forever blocks its path to a nuclear weapon, addresses the entire range of its malign actions, and is worthy of the Iranian people.”
  • The waivers prompted conservative U.S. critics of the administration’s approach -- including Republican Senators Marco Rubio and Ted Cruz -- to say the White House was caving in on its tough line and to vow legislation to close what they consider loopholes.

Market Reaction

  • Global benchmark Brent crude has fallen about 15 percent from over $85 a barrel last month on increasing speculation that at least some nations would get waivers, as well as signs that other OPEC members will pump more to offset any supply gap.