Iran vows 'devastating' response as US threatens toughest ever economic hit

Iran has warned that its response to any new U.S. threats would be "devastating," following Washington's pledge to impose the toughest financial penalties in history with the aim of toppling the Iranian leadership. U.S. Treasury Secretary Steven Mnuchin said he would disclose details on Monday of the planned sanctions, which come after President Donald Trump threatened economic consequences against any country providing "any type of lifeline to Iran."

Maj. Gen. Ali Abdollahi, the chief of staff of Iran's Armed Forces, said Iran's reaction would be broad and decisive, with its armed forces prepared to respond with "crushing, punishing and devastating responses" across land, sea, air, air defense and cyberspace. Iran's parliament speaker, Mohammad Baqer Qalibaf, said Washington appeared to have concluded it could not prevail in a direct military confrontation, urging the U.S. and Israel to resort to economic and "cognitive" warfare instead.

Mnuchin said the measures should not drive up oil prices, but oil steadied on Friday on concern over Gulf energy exports, hitting a three-week high on Thursday amid sanctions threats. The sanctions threat has led to a decline in the number of commodity ships sailing through the Strait of Hormuz, which has been a point of conflict between Iran and the U.S. since the Islamic Revolution in 1979.

Iran's foreign ministry said U.S. sanctions would not deter Iranians' determination to safeguard their independence, dignity and national sovereignty, but Mnuchin said the U.S. was aiming to "collapse" the Iranian regime and urged allies to decide on their response, describing the sanctions as a "one-two punch."