Iran announced on Friday that any new threats from the United States would be met with a “devastating” response, following Washington’s pledge to impose the harshest financial sanctions in history to unseat the Iranian leadership.
Treasury Secretary Scott Bessent indicated he would reveal details about the upcoming sanctions on Monday, after President Donald Trump warned of economic repercussions for any country providing “any type of lifeline to Iran.”
Major General Ali Abdollahi, chief of staff of Iran’s Armed Forces, stated that the country’s reaction would be comprehensive and firm. “With readiness across land, sea, air, air defense, and cyberspace, Iran’s military will respond to enemy threats with crushing, punishing, and destructive measures,” he was quoted as saying by Iranian media.
Both Iranian officials and Trump have issued statements filled with triumph and threats amid a prolonged conflict that has persisted for nearly six months, initiated by the US and Israel. The conflict has resulted in thousands of casualties, drawn in regional Gulf nations, and driven up global fuel prices.
US strikes have heavily impacted Iran’s economy and conventional military forces, yet Tehran still retains sufficient missile and drone capabilities to disrupt oil tanker traffic through the Strait of Hormuz and target neighboring rivals.
### An Unpopular War
President Trump has yet to accomplish major objectives he aimed for at the war’s outset, such as dismantling Iran’s nuclear program and creating conditions that might lead Iranians to overthrow their clerical rulers. The conflict has increased gasoline prices and hurt Trump’s popularity; a recent Reuters/Ipsos poll showed his approval ratings falling to their lowest in his current term.
Mohammad Baqer Qalibaf, Iran’s parliament speaker and lead negotiator in indirect talks with the US, suggested that Washington now sees that direct military confrontation is unlikely to succeed. “We need to prepare to counter these unjust sanctions so we can overcome them,” he said during a visit to neighboring Iraq.
However, in discussions with Iranian and Iraqi businesspeople, Qalibaf acknowledged the economic strain Iran faces. “No matter our military strength, we won’t survive if people are hungry and if we lack financial activity, economic growth, and domestic production,” he noted, according to official news agency IRNA.
### Oil Prices Rise on Sanctions Threat
Crude oil prices, both internationally and in the US, increased on Friday amid warnings of sanctions on Iran’s trading partners, which could tighten supply in the upcoming weeks. Bessent told CNBC he would detail the sanctions at a Monday press conference, asserting, “We are going to collapse this regime.”
Despite nearly five decades of sanctions since the Islamic Revolution of 1979, Iran’s population is suffering from high inflation, a declining currency, energy shortages, and damaged infrastructure. Broader international consequences could follow, as Bessent pointed out that China derives half its energy from the Gulf and might be inclined to align with the US against Iran.
China imports over 80% of Iran’s exported oil, according to 2025 data from analytics firm Kpler. Further US economic measures against Beijing could provoke retaliation, especially as China relaxes restrictions on exports of key rare-earth minerals.
The Chinese embassy in Washington stated, “Sanctions and pressure do not resolve the problem,” calling for diplomacy instead.
There are also significant risks for US allies in the Gulf, including attacks on energy infrastructure and desalination plants that supply drinking water. The US and Iran have twice announced ceasefire agreements—with efforts in April and June—to reopen shipping lanes in the Strait of Hormuz, which before February handled about 20% of global oil trade.
Iran and Oman, the neighboring country across the narrow strait, have been engaged in separate talks aimed at resuming navigation, but the US opposes any deal that would impose tolls on ships passing through.
NATO’s top commander, US Air Force General Alexus Grynkewich, held a virtual defense summit with allies on Wednesday to discuss supporting free navigation in the Strait. The spokesperson clarified that this is not a NATO mission but utilizes the alliance’s capabilities to assist in safeguarding maritime passageways.