After the US announced what it called "unprecedented" sanctions, including a land blockade, an Iranian foreign ministry spokesperson said the measures would not affect Iran's position. The spokesperson said Iran has prepared contingency plans for further US action, accused the US of cutting medicine supplies and illegal military aggression, and said Iran will employ all available means to respond to the new situation.

Goldman Sachs says markets remain too aggressive on Fed rate-hike expectations as US inflation cools. Chief economist Jan Hatzius wrote that weak retail sales, disappointing jobs and slowing inflation make a September Fed hike "extremely unlikely." He added that on Goldman’s baseline, inflation is more likely to improve than worsen and market pricing of the federal funds rate remains too hawkish. Markets have pushed the next 25bp hike out to January next year after fully pricing a December move a week ago. Goldman sees further scope for easing of hike expectations.

Iran's foreign ministry spokesman BAGHAEI said the problem with the US is not mediation but Washington's mindset and misjudgments, and its insistence on methods repeatedly proven to fail; the current US administration is repeating past mistakes and the outcome will be unchanged.