Iran Vows Painful Response to Further Attacks as Economic Pressures Mount

Iran has announced intensified efforts to counter the economic fallout from US sanctions and military strikes, even as it warns of a more forceful response to any future attacks. The moves come after a weekend exchange of fire in the Gulf, with US forces hitting three Iranian vessels in response to missile launches by Iran's Islamic Revolutionary Guard Corps (IRGC).

Parliament Speaker Mohammad Baqer Qalibaf said on Sunday that any attack on Iran's interests or security would now draw a "faster, heavier and more painful response." His remarks, published on his Telegram channel, signal a hardening stance after months of tit-for-tat strikes that have stalled a preliminary ceasefire reached in June.

On the economic front, Iran's Economy Ministry has established an "Economic War Headquarters" to address problems caused by the conflict, according to the semi-official Tasnim news agency. Deputy Economy Minister Morteza Zamanian said the body was intensifying its work to resolve war-related economic issues.

Economy Minister Ali Madanizadeh rejected the notion that sanctions could force a change in Iran's decisions. "The responsibility of reforming Iran's economy is with its government and people, not with the US Treasury," he said in remarks carried by state media.

Qalibaf acknowledged the severity of the economic challenge, citing sharp currency fluctuations, inflation, unemployment, and market management as major issues. He stressed that Iranians could tolerate hardship but not mismanagement or inaction.

The latest military escalation began on Saturday when US Central Command said it struck three Iranian vessels, including one near Kharg Island, after the IRGC launched ballistic missiles at two US Navy ships. Admiral Brad Cooper, head of Central Command, said the strikes were meant to impose a higher economic cost on Iran. The IRGC responded by threatening intensified attacks on US vessels in the region.

Iran's oil export hub at Kharg Island has been a focal point of tensions. Oil Minister Mohsen Paknejad said the island had been hit around 550 times in previous months but continued to operate. Iran has also imposed a blockade on the Strait of Hormuz, a vital oil chokepoint, which has pushed up global fuel prices.

In a separate development, Tasnim reported that the IRGC shot down a US surveillance balloon over Erbil in northern Iraq, part of what it described as an effort to eliminate US aerial surveillance in the region.