Iran warns new US sanctions will deepen Middle East tensions

Dubai,UPDATED: Aug 24, 2026 18:18 IST

Iran warned on Monday that a fresh round of US sanctions would not bring peace to the region, as tensions across the Middle East stayed high. The warning came as Israeli and Syrian officials held talks in Jordan days after an Israeli strike in Syria, and Israel said it had killed a Hamas militant in Gaza.

The developments unfolded against the backdrop of continuing strain over the Iran war, stalled diplomacy and violence in Gaza and the occupied West Bank. Ahead of the expected US sanctions announcement, Iran's currency fell to a record low.

Iran's Foreign Ministry spokesperson Esmail Baghaei said Tehran would respond strongly to expanded US sanctions, including any measures against countries that cooperate with Washington. "Any escalation of this situation will undoubtedly bring about consequences," he said. "Our hands are not tied." On Sunday, the new head of Iran's top security body also said Tehran would treat any country's support for the sanctions as an "act of war".

The expanded sanctions follow weeks of deadlock. The United States has not broken Iran's control over the Strait of Hormuz, through which a fifth of the world's traded oil passed before the war began nearly six months ago. Iran has demanded the lifting of the US naval blockade, the withdrawal of US forces from the region and reparations for damage suffered in the war before the strait is reopened. It has also held separate talks with Oman on jointly managing the waterway, whether or not a new deal is reached with the US.

Sanctions have in the past pushed up the prices of basic goods in Iran, but the country's economy has adapted over the years by finding new trading partners and building domestic industries. Even so, ahead of Monday's expected US announcement, the Iranian currency touched a record low.

In another development, Syrian state news agency SANA said Foreign Minister Asaad al-Shibani met a senior Israeli delegation in Jordan over the weekend in US-mediated talks meant to ease tensions after Israel struck the Abu Duhur air base in Idlib province last week. SANA said the two sides discussed restarting negotiations on a future security agreement.

Israel had said the strike was aimed at stopping Turkey from establishing a presence at the base as it backs the new Syrian government's efforts to rebuild its armed forces after 14 years of civil war. During the talks, Syrian officials said the country had the right to build its army and form alliances with any country. They also called for Israeli forces to withdraw from a buffer zone in southern Syria that they have occupied since December 2024, and repeated Syria's position that the Golan Heights is Syrian territory. Israeli officials did not immediately comment on the meeting.

In Gaza, Israel's military said it killed a militant linked to Hamas' special forces unit in an overnight airstrike. It was the latest in a series of targeted killings announced since US officials met Prime Minister Benjamin Netanyahu last week in an effort to move forward last year's ceasefire deal. Israel says it targets Palestinian militants it says took part in the October 7, 2023, attack that triggered the war. It has announced targeted strikes on six of the seven days since US negotiator Jared Kushner met Netanyahu. Gaza's health ministry said at least 1,288 Palestinians have been killed since the ceasefire took effect last October. The ministry is part of the Hamas-run government, and its figures are generally regarded as reliable by the international community.

In the occupied West Bank, Palestinian American Loui Ridi said he still could not move freely in the village of Qusra after Israeli settlers besieged his home earlier this month. Ridi, who travelled from Ohio, said settlers returned through the week to the hill above the house. The Israeli military declared the area a closed zone to restore order, but while soldiers have urged the family to leave, police have not announced any arrests since settlers first surrounded the home more than two weeks ago and blocked those inside from leaving.

The siege and Israel's response have drawn criticism from Israeli rights groups and foreign officials, including US Ambassador to Israel Mike Huckabee, who called the violence terrorism. Palestinians regard the West Bank, where about 3 million Palestinians and 560,000 Israeli settlers live, as the core of a future state, and have criticised Israel's expansion there. Monday's developments reflected the wider regional strain, from sanctions pressure on Iran to continued military action and unrest in Syria, Gaza and the West Bank.

With PTI Inputs

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