Iran vows 'devastating' response as U.S. threatens toughest ever economic hit
Iran has threatened a 'devastating' response to new U.S. economic sanctions aimed at curbing its influence. U.S. Treasury officials are preparing to announce the toughest financial penalties to date, while Iranian leadership accuses the U.S. and Israel of economic warfare.
Why it matters
Escalating tensions between the U.S. and Iran threaten regional stability in the Middle East and could impact global energy markets.
Iran said on Friday (August 21, 2026) that its response to any new U.S. threats would be "devastating" after Washington pledged to impose the toughest financial penalties in history with the aim of toppling the Iranian leadership.
U.S. Treasury chief Scott Bessent said he would give details on Monday of the planned sanctions, which follow a warning from President Donald Trump of economic consequences against any country that provided "any type of lifeline to Iran."
The chief of staff of Iran's Armed Forces, Major General Ali Abdollahi, said the Islamic Republic's reaction would be broad and decisive.
"With preparedness across land, sea, air, air defence and cyberspace, Iran's armed forces will respond to the enemy's new threats with crushing, punishing and devastating responses," Abdollahi was quoted as saying by Iranian media.
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