Iran has vowed a "crushing and devastating" response to any new threats from the United States following Washington's pledge to impose the harshest financial penalties in history aimed at toppling the Iranian leadership.
US Treasury Chief Scott Bessent announced that details of the new sanctions will be revealed on Monday. This follows President Donald Trump's warning of severe economic consequences for any nation supporting Iran. Describing the strategy as maximum economic pressure the Bessent explicitly stated the administration's goal is to "collapse this regime."
In response, Major General Ali Abdollahi, Chief of Staff of Iran's Armed Forces, warned that Iran maintains comprehensive readiness across land, sea, air and cyberspace. He declared that any enemy miscalculation would be met with a decisive and punishing reaction.
Iranian Parliament Speaker Mohammad Baqer Qalibaf accused the US and Israel of waging economic and "cognitive" warfare also suggesting Washington has realized it cannot win a direct military confrontation. Iran’s foreign ministry reiterated that the sanctions would not shake the nation's determination to safeguard its sovereignty.
The escalating tensions continue to heavily disrupt Gulf energy exports. Shipping traffic through the vital Strait of Hormuz has plummeted to a fraction of its pre-war volume, driving up global oil prices. Previous attempts by the US and Iran to establish ceasefires in April and June to restore these critical shipping lanes quickly collapsed.
The geopolitical fallout also threatens US-China relations. With China currently purchasing over 80% of Iran's shipped oil, US officials have signaled potential pressure on Beijing to comply with the embargo. In response, the Chinese embassy in Washington has urged a diplomatic approach with warning that "sanctions and pressure do not help resolve the problem."
