Iran official says support for new sanctions would be an 'act of war,' and other Middle East news

WASHINGTON, 24 AUGUST 2026 —

Iran Warns New Sanctions Would Be ‘Act of War’ as U.S.-Iran Talks Stall

The warning from Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, came as U.S. Treasury Secretary Scott Bessent prepared to announce fresh sanctions targeting Iran’s economy. Rezaei, a former Revolutionary Guard commander, vowed retaliation, stating in an interview with state broadcaster IRNA that Iran would respond “in a seismic manner” if Washington proceeded. He also threatened to disrupt alternative oil-shipping routes in the Persian Gulf, beyond the Strait of Hormuz, which has been a flashpoint in the standoff.

Iranian President Masoud Pezeshkian, speaking at a news conference in New York on Sunday, defended a memorandum of understanding (MoU) signed with the U.S. in June as the best path to resolve the deadlock. The agreement had set a 60-day window to end the war and finalize a nuclear accord, but that period lapsed last week without progress. Pezeshkian emphasized that the MoU did not amount to capitulation, asserting that Iran’s leadership, guided by Supreme Leader Ayatollah Mojtaba Khamenei, would adhere to its strategic direction.

“There is not a single provision in this agreement that amounts to capitulation,” Pezeshkian told state-run IRNA. “The supreme leader sets the policies, and we will follow that path.” He added that Iran’s economic prospects hinge on resolving the conflict, as stalled negotiations have deterred foreign investment six months into the war.

Meanwhile, the U.S. military reported that its blockade of Iranian ports had redirected 70 commercial ships and disabled three as of Sunday. Shipping traffic through the Strait of Hormuz, a critical chokepoint for global oil supplies, remained at reduced levels, with no confirmed attacks in the past 48 hours, according to a multinational coalition led by the U.S. Navy.

Iran’s newly formed Persian Gulf Strait Authority, which the U.S. has sanctioned, published a list of dozens of vessels it claims violated transit arrangements. These ships may face future restrictions, including fines or seizures. The authority is now in discussions with Oman, which shares the strait, to formalize management arrangements that could include mandatory fees for transiting vessels—a shift from its previous status as an international waterway.

Regional mediation efforts intensified on Sunday, with Pakistan’s army chief, Field Marshal Asim Munir, scheduled to visit Tehran on Monday. Iranian state television reported the visit, citing Foreign Ministry spokesperson Esmail Baghaei, as part of Islamabad’s push to de-escalate tensions between the U.S. and Iran and encourage a return to negotiations. Two regional officials, speaking on condition of anonymity, confirmed that the trip aims to revive diplomatic channels.

The escalation follows a week of heightened rhetoric and military posturing. On Saturday, Rezaei warned on X (formerly Twitter) that any U.S. action would provoke a severe response, amplifying his earlier remarks. His appointment to the security council this month has been widely interpreted as a hardening of Iran’s stance, with analysts suggesting a shift toward more assertive policies under the new administration.

In a separate development, Iran’s judiciary executed Majid Adineh on Sunday, accusing him of involvement in January protests. The Mizan news agency reported that Adineh was arrested on Jan. 9 in Mohammadshahr, west of Tehran, and convicted under laws penalizing espionage and cooperation with hostile states. His case underscores the ongoing crackdown on dissent following nationwide unrest earlier this year.

The broader Middle East remains a powder keg, with violence persisting in the West Bank and Gaza. In the occupied West Bank, a 14-year-old boy, Islam Maher Ajouri, was killed by Israeli forces in Nablus, according to the Palestinian Ministry of Health. His uncle, Nehad Ajouri, condemned the shooting as indiscriminate. Separately, a 61-year-old Palestinian man, Saeed Muhammad Ibrahim Rabah, was beaten outside his home in Khirbet al-Rakeez by a 16-year-old Israeli settler. Rabah, who lost a leg in a settler shooting last year, told the Associated Press that the attack was an attempt to force Palestinians from their land. “We will remain, no matter what happens,” he said.

In Gaza, a four-year-old boy, Mohammed Taha, died after an Israeli airstrike hit a house in central Gaza, wounding at least five others, according to Al-Aqsa Martyrs Hospital. The Israeli military later confirmed it had targeted and killed a Hamas commander in the strike.

The collapse of the U.S.-Iran talks and the imposition of new sanctions risk further destabilizing a region already grappling with multiple conflicts. Analysts warn that the absence of diplomatic progress could lead to more aggressive posturing from both sides, with potential spillover effects on global oil markets and regional security.

For Malaysia and Southeast Asia, the escalation in the Persian Gulf carries economic implications, given the region’s reliance on Middle Eastern oil supplies. Any disruption to shipping through the Strait of Hormuz could drive up crude prices, impacting energy-dependent economies like Malaysia. Trade flows between Southeast Asia and the Middle East may also face delays or increased costs if tensions persist.

Stakeholders in Malaysia’s energy sector are closely monitoring the situation. A spokesperson for Petroliam Nasional Bhd (Petronas) told Reuters that the company is reviewing contingency plans to mitigate potential supply chain disruptions. “We are in constant dialogue with our partners to ensure the stability of our operations,” the spokesperson said, declining to elaborate further.

Regional diplomats are urging restraint, with calls for both Washington and Tehran to return to negotiations. The Association of Southeast Asian Nations (ASEAN) has yet to issue a formal statement, but diplomatic sources suggest the bloc may facilitate backchannel discussions to prevent further escalation.

Looking ahead, the next 72 hours will be critical. U.S. Treasury Secretary Bessent’s announcement of new sanctions on Monday could trigger a swift Iranian response, potentially targeting U.S. allies or commercial vessels. Meanwhile, Pakistan’s mediation efforts may offer a glimmer of hope, though the prospects for a breakthrough remain slim given the entrenched positions on both sides.

For now, the Middle East remains on edge, with the specter of wider conflict looming over a region already scarred by decades of instability. The failure of the 60-day deadline has left diplomats scrambling for alternatives, while military posturing continues to escalate. The coming days will determine whether cooler heads prevail—or whether the region is drawn deeper into crisis.

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