U.S.-Iranian relations are entering a new phase of tension, with Washington warning foreign banks and financial institutions that continue transactions with Iran’s financial sector that they risk being hit with U.S. sanctions.

At the same time, Iranian President Masoud Pezeshkian says negotiations with the United States “make no sense,” stressing that Tehran has been attacked repeatedly following talks.

The U.S. Treasury Department warned that any foreign financial institution continuing to conduct transactions with sanctioned Iranian banks or other sanctioned entities could face measures without warning.

Washington says the Iranian government uses “parallel banking channels” to circumvent sanctions and is calling on financial institutions around the world to identify and avoid them.

The move is part of a broader U.S. effort to economically isolate Iran, with measures targeting the financial sector, cryptocurrencies, transportation and industry.

The United States is also targeting banks outside Iran, including in the United Arab Emirates and Turkey, accusing them of facilitating transactions on behalf of Tehran.

Pezeshkian: “Negotiations Make No Sense”

Pezeshkian said that negotiations make no sense under the current circumstances.

“Until now, we have been attacked three times after talks,” he said.

The Iranian president stressed that Washington “is not seeking dialogue.”

He also said that there can be no meaningful negotiations with a side that imposes sanctions, applies military pressure and does not honor its commitments.

Seven Months of War and Deadlock

More than seven months after the U.S. and Israeli bombing campaign began on February 28, the situation remains at a deep impasse.

Iran targeted U.S. allies in the Gulf and closed the Strait of Hormuz, one of the world’s most important energy routes, contributing to a sharp rise in energy and commodity prices.

Despite the April ceasefire, the June memorandum of understanding, and the indirect talks held around the United Nations General Assembly in September, disagreements remain over the Strait of Hormuz, sanctions and Iran’s nuclear program.

Iran’s Proposal and Trump’s “No”

In late September, indirect contacts took place in New York.

Tehran proposed fully reopening the Strait of Hormuz within seven days in exchange, among other things, for the lifting of U.S. economic sanctions and restrictions.

Donald Trump rejected the proposal, while leaving open the possibility of continuing indirect talks.

Washington, however, continues to impose new sanctions, while the possibility of renewed military operations has not been ruled out.

Araghchi: “There Is No Military Solution”

Shortly before Pezeshkian, Foreign Minister Abbas Araghchi sent a different but equally firm message.

Speaking to foreign ambassadors in Tehran, he said there is neither a military solution nor a solution through new sanctions.

Only negotiations based on justice and equality can bring the conflict to an end, he said.

He warned that if Iran’s adversaries choose military confrontation again, Tehran’s response will be “stronger than before.”

Relative De-escalation on the Ground

Despite the rhetoric, there has been a relative military de-escalation in recent weeks.

U.S. armed forces have not carried out strikes against Iran since September 1, although incidents involving vessels in the Strait of Hormuz continue.

The diplomatic deadlock, combined with the new U.S. sanctions campaign, keeps the risk of renewed escalation high.