Iran stated on Friday that its response to any new U.S. threats would be "devastating," following Washington's pledge to enact the most stringent financial penalties ever introduced, with the stated goal of collapsing the Iranian leadership. U.S. Treasury Secretary Scott Bessent announced that he would detail the sanctions on Monday, building on President Donald Trump's earlier warning of economic consequences for any nation providing a "lifeline to Iran."
The chief of staff of Iran’s Armed Forces, Major General Ali Abdollahi, indicated that the Islamic Republic's reaction would be "broad and decisive." According to Iranian media, Abdollahi said, "With preparedness across land, sea, air, air defense and cyberspace, Iran’s armed forces will respond to the enemy’s new threats with crushing, punishing and devastating responses."
Iranian Parliament Speaker Mohammad Baqer Qalibaf, a key negotiator in mediated talks with the U.S., suggested that Washington may have concluded direct military confrontation is not viable. Speaking in Iraq, Qalibaf stated, "We must make plans to deal with the unjust sanctions so that we can overcome them," accusing the U.S. and Israel of engaging in economic and "cognitive" warfare.
Economic Pressure and Oil Flows
Oil prices experienced a slight decrease on Friday but were poised for a second consecutive weekly rise, having increased on Thursday following the announcement of new U.S. sanctions. Bessent expressed skepticism regarding the rise in oil prices, telling CNBC, "I’m not sure why oil has popped up on this." He added, "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart," referring to military action.
The ongoing conflict has resulted in thousands of casualties and impacted global fuel prices, particularly as Iran has targeted shipping through the Strait of Hormuz, a vital chokepoint that previously handled approximately one-fifth of all traded oil daily. Data from ship tracker Kpler indicated that on Thursday, only seven commodity ships sailed through the Strait of Hormuz, a significant reduction from the previous day and from over 130 ships per day before the war began.
Ceasefire agreements were announced by the U.S. and Iran in April and June, intended to restore the free flow of ships through Hormuz and move towards ending the nearly six-month-old conflict. However, both accords quickly collapsed. Bessent is scheduled to elaborate on the specific actions planned against Iran at a press conference on Monday.
Bessent declared, "We are going to collapse this regime. It is time for our allies and the rest of the world to make a decision," characterizing a naval blockade reimposed on Iran in July and the "toughest sanctions in history" as a "one-two punch."
Iran has endured nearly continuous economic sanctions since the 1979 Islamic Revolution. Despite this history, its population is currently facing high inflation, a depreciating currency, energy shortages, and damaged infrastructure. Some Iranians interviewed by Reuters have voiced concerns that further economic penalties could exacerbate hardship, weaken the clerical establishment, and potentially incite unrest, though no such indications have emerged since a forceful crackdown on protests in January.
Iran's foreign ministry asserted that U.S. sanctions would not "create even the slightest hesitation in Iranians’ determination to safeguard Iran’s independence, dignity and national sovereignty." Iranian President Masoud Pezeshkian, noted for his more moderate stance and concerns about the economy, echoed earlier sentiments, stating that Iran's response to attacks would be "crushing" but emphasizing that the war should end now that the U.S. is internationally isolated.
President Trump is reportedly facing pressure to end the war, with high fuel prices negatively affecting his approval ratings and potentially jeopardizing the Republican Party's control of Congress in the upcoming November midterm elections. Bessent suggested that China, which obtains half its energy from the Gulf, should "get with the program."
According to 2025 data from analytics firm Kpler, China imports more than 80% of Iran’s shipped oil. However, further U.S. economic actions against Beijing, which has recently eased restrictions on its vital rare-earth mineral exports, risk retaliatory measures. Trade sources informed Reuters that offers of Iranian crude to Chinese buyers have already decreased since the U.S. reimposed its blockade on Iranian ports in mid-July. China's embassy in Washington stated that "sanctions and pressure do not help resolve the problem," advocating for diplomatic solutions. Tightening sanctions also poses risks to U.S. allies in the Gulf, some of whose energy facilities and essential desalination plants have been targeted by Iran.