Iran warns of 'devastating' retaliation as US unveils new sanctions push
Iran threatens a crushing response to new US sanctions, as Washington pledges its toughest-ever economic pressure and a naval blockade cuts oil flows.
Iran has warned of a 'devastating' response to any new American threats, after Washington pledged to impose its toughest-ever financial penalties aimed at collapsing the Iranian leadership.
Major General Ali Abdollahi, chief of staff of Iran's Armed Forces, said the Islamic Republic's reaction would be broad and decisive. "With preparedness across land, sea, air, air defence and cyberspace, Iran's armed forces will respond to the enemy's new threats with crushing, punishing and devastating responses," he was quoted as saying by Iranian media.
Parliament speaker Mohammad Baqer Qalibaf, who has served as Iran's main negotiator in mediated talks with the US, said Washington appeared to have concluded it could not win a direct military confrontation. He accused the US and Israel of resorting to economic and "cognitive" warfare, and called for plans to overcome the "unjust sanctions."
US Treasury chief Scott Bessent announced the new measures on Thursday, promising further details at a press conference on Monday. He described the strategy as a "one-two punch," combining a naval blockade on Iran with the toughest sanctions in history. "It is going to work in Iran and we are going to collapse this regime," he said.
Bessent downplayed the impact on oil markets, saying he was unsure why prices had risen on the news. He argued that maximum economic pressure would likely prevent a large-scale military conflict. Oil prices steadied on Friday but remained on track for a second weekly gain, after hitting a three-week high on Thursday.
The US and Iran have twice announced ceasefire deals, in April and June, but both quickly collapsed. The conflict has drawn in Gulf nations and disrupted shipping through the Strait of Hormuz, a waterway that carried about a fifth of globally traded oil before February.
Iran's foreign ministry condemned the US measures as "economic terrorism," saying they would not create "even the slightest hesitation" in Iranians' determination to safeguard the nation's independence and sovereignty.
Meanwhile, the reimposed US naval blockade, effective July 13, has begun to squeeze Iranian oil exports to China, which buys over 80% of Iran's shipped oil. Trade sources said offers of Iranian crude to Chinese buyers have declined and prices have jumped this week. When asked if Washington could target China for doing business with Iran, Bessent said many conversations were best held in private, but noted China's significant energy dependence on the Gulf. China's embassy in Washington said "sanctions and pressure do not help resolve the problem," calling for political and diplomatic solutions.