Ships anchored in the Strait of Hormuz off the coast of Bandar Abbas, Iran, on August 10, 2026. /VCG
Ships anchored in the Strait of Hormuz off the coast of Bandar Abbas, Iran, on August 10, 2026. /VCG
Editor's note: Professor Wang Jin is a Middle East expert and CGTN Commentator.
The article reflects the author's opinion and not necessarily the views of CGTN.
The impact of the new round of US sanctions on Iran has long extended beyond the bilateral relationship between the United States and Iran. The sanctions will not only deepen Iran's economic and livelihood difficulties, but will also transmit their effects across the region and the wider world through energy, trade, finance and supply chains.
As the costs of sanctions continue to spill over, the United States is seeking to achieve its strategic objectives through economic pressure, but it may ultimately shift the risks and costs onto its allies and developing countries, creating a situation in which "the United States exerts the pressure while the world bears the cost.
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The US sanctions against Iran, as well as the threatened new round of sanctions, will further aggravate Iran's economic difficulties and place additional pressure on people's livelihoods. Since the outbreak of the US-Iran conflict in late February, Iran's domestic economy has continued to deteriorate.
Recently, the Iranian rial fell below the level of 2 million rials per US dollar, while prices inside Iran have risen rapidly and the cost of living for ordinary people has increased. Against this backdrop, a new round of US pressure on Iran will further exacerbate the country's economic difficulties and the hardships faced by its population.
Fresh US sanctions on Iran will further spread anxiety across international energy markets. As the intensity of the US-Iran conflict has gradually declined, there have been widespread expectations that the two sides could resume dialogue, and the United States had even hoped to gradually lift its blockade and sanctions against Iran.
However, instead of reducing its military pressure on Iran, Washington has further increased economic pressure, expanding and strengthening the scope, areas and instruments of sanctions. This has raised concerns within the international community that the US-Iran conflict could erupt again.
Against this backdrop, heightened fears will continue to push up international crude oil prices, while anxiety in international energy markets will further contribute to keeping energy prices at elevated levels.
US financial sanctions against Iran, particularly the demand that other countries choose sides, will further increase production costs in international energy markets.
Although the United States has maintained an economic blockade against Iran for a long time, countries in the region have continued to preserve economic ties with Iran through various channels, maintaining close relations with the country in finance, transportation, manufacturing, chemicals, energy, infrastructure and other sectors.
As the United States increases pressure on Iran, particularly by demanding that other countries choose sides, regional countries will be forced to readjust their economic relations with Iran. Under US pressure, they may have to reduce or restructure their economic ties with Iran.
Given the war and the negative impact that the US-Iran conflict has had on regional economies since late February, countries in the region, particularly the Gulf states, will inevitably incur new economic costs as they adjust their relations with Iran.
This will further affect fluctuations in international economic and energy markets.
More importantly, the new US sanctions have consequences for the United States itself. The expansion of sanctions against Iran will keep international energy prices elevated for an extended period.
As an important component of the international energy system, the petrochemical industry will see its prices remain high, further driving up production costs in other sectors. This will be particularly significant for agricultural inputs such as fertilizers, which are closely linked to the petrochemical industry.
Persistently high fertilizer prices will in turn increase agricultural production costs and push up global food prices.
For the United States itself, the prolonged instability in the Middle East and the continued escalation of sanctions against Iran will inevitably increase agricultural production costs, driving up domestic agricultural prices and further fueling inflation.
This will increase the cost of living for Americans and contribute to growing public dissatisfaction, ultimately producing adverse effects on the US economy and domestic political situation.
For the United States, however, the greatest damage caused by the new round of economic sanctions against Iran and their broader economic consequences will ultimately be borne by developing countries.
The United States can shift the costs of rising prices onto its regional allies, particularly by requiring the Gulf Arab states to shoulder the enormous costs associated with US economic reconstruction, military reconstruction and sanctions against Iran.
As price increases and inflationary pressures within the United States intensify, the costs will ultimately be redistributed through the US-dominated financial and economic systems, forcing developing countries to bear the consequences of economic pressures generated by Washington.
The United States does not need to directly "pay" for sanctions against Iran, while costs generated by economic sanctions will ultimately be borne by the whole world.