Iran vows 'devastating' response to US economic threat

Iran has declared its response to any new US threats will be "devastating," following Washington's pledge to impose the harshest financial penalties in history. US Treasury Secretary Scott Bessent announced these plans, following President Donald Trump's warning of economic consequences against countries aiding Iran. Iran's Armed Forces chief, Major General Ali Abdollahi, stated the Islamic Republic would respond with broad and decisive measures across land, sea, air, air defense, and cyberspace.

President Trump appears to have given up on a direct military confrontation, with Iran's parliament speaker Mohammad Baqer Qalibaf accusing the US and Israel of using economic and cognitive warfare. Oil prices spiked after the threat, as the sanctions aimed at forcing Iran to end the conflict that has killed thousands and disrupted oil shipping through the Strait of Hormuz.

Iran has endured sanctions for nearly 50 years, but Bessent said the package of new economic sanctions would "collapse" the regime. China, which buys most of Iran's oil, urged responsible actions to resolve the issue through diplomatic means.