Against the backdrop of a protracted battle that has led to economic problems in Iran, deaths of some leaders, and limitations on oil transport in the Strait of Hormuz, the US issued sanctions aimed at blocking the use of the US dollars by other countries transacting business with Iran. The move was rejected outright by Iran which stated its readiness for both economic and military retaliation. Other allies of Iran like China warned that they will not submit to the US pressure. With mediation efforts by Pakistan failing to ease the tension, a truce looks unlikely in the near future.