Iran vows 'devastating' response to US sanctions barrage

Tehran warns of crushing retaliation as the US prepares the toughest sanctions in history and reimposes a naval blockade choking Iranian.

Treasury Secretary Scott Bessent announced on Thursday that the United States will impose "the toughest sanctions in history" on Iran, with details expected on Monday. Bessent described a reimposed naval blockade and the sanctions as a "one-two punch" aimed at collapsing the Iranian regime. The announcement follows President Donald Trump's warning of economic consequences against any country providing "any type of lifeline to Iran." The sanctions are intended to force Iran to agree to end the conflict that has raged for nearly six months, having already drawn in Gulf nations and stranded millions of barrels of Middle Eastern oil.

Iran's armed forces chief, Major General Ali Abdollahi, said the Islamic Republic would respond to new threats with "crushing, punishing and devastating" responses across land, sea, air, air defense, and cyberspace. According to Iranian state media outlet NourNews, Abdollahi vowed the armed forces would confront "any miscalculation and conventional and new threats" with "revolutionary, crushing, regret-inducing and devastating responses." Parliament Speaker Mohammad Bagher Ghalibaf, Iran's main negotiator in mediated talks with the US, said Washington appeared to have concluded it could not prevail militarily and accused the US and Israel of waging economic and "cognitive" warfare.

The reimposed US naval blockade on Iranian ports is sharply reducing Iran's oil exports. Kpler Senior Crude Oil Analyst Muyu Xu wrote on LinkedIn that buyers face "virtually no new supplies" of Iranian oil, with 40 million barrels floating on ships in Malaysian waters. According to Fox News, China, the largest importer of Iranian oil, reduced imports to an estimated 534,000 barrels per day in August, down from 823,000 in July. Reuters reports that offers of Iranian crude to Chinese buyers have declined and prices jumped. NBC News reports that China buys more than 80% of Iran's shipped oil.

Oil prices rose more than 2% on Thursday to their highest levels in nearly a month. According to Fox News, Brent crude settled up $2.16 at $93.78 a barrel, while West Texas Intermediate gained $2 to $87.83. NBC News reports prices steadied Friday but were on track for a second weekly rise. The tension stems from Iran's ability to disrupt shipping through the Strait of Hormuz, a waterway that carried about a fifth of all traded oil before the war began in February. Oil trading firm Ritterbusch and Associates told Reuters that new US threats are unlikely to sway Iran from its primary leverage — control of the Strait.

Bessent urged China to "get with the program" on sanctions, noting that Beijing gets 50% of its energy from the Gulf. China's Ministry of Foreign Affairs spokesman Lin Jian pushed back, stating that "military means, sanctions and pressure tactics are not the solution" and would only lead to escalation. China's embassy in Washington said "sanctions and pressure do not help resolve the problem" and called for political and diplomatic means. According to NBC News, engaging in economic warfare with Beijing, a major exporter to the US of rare-earth minerals, risks retaliation. Bessent said many conversations about targeting China were best held privately.

The US and Iran have twice announced ceasefire deals, in April and June, aimed at restoring free shipping through the Strait of Hormuz, but both quickly crumbled. Fox News reports that Iranian President Masoud Pezeshkian called for an end to the war, saying "it is better to end the war today" while acknowledging the financial toll of inflation. He appeared to criticize hardliners "sitting outside the circle" who comment without knowing the state of the government. Trump faces domestic pressure to end the war, with high fuel prices dragging approval ratings and threatening Republican control of Congress in November midterms.