Iran vows 'devastating' response as US warns of toughest ever financial strike
- Last updated: August 21, 2026 | 14:10
Iran said on Friday that its response to any new US threats would be "devastating" after Washington pledged to impose the toughest financial penalties in history with the aim of toppling the Iranian leadership. US Treasury chief Scott Bessent's comments on Thursday followed a warning from President Donald Trump of economic consequences against any country that provided "any type of lifeline to Iran." Bessent promised details on Monday.
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.
Iran's powerful parliament speaker Mohammad Baqer Qalibaf, the country's main negotiator in mediated negotiations with the United States, said Washington appeared to have concluded it could not prevail in its direct military confrontation. "We must make plans to deal with the unjust sanctions so that we can overcome them," he said during a visit to neighbouring Iraq, accusing the US and Israel of resorting to what he said was economic and "cognitive" warfare.
Reimposed US blockade starts reducing oil flows to China
China buys more than 80% of Iran's shipped oil, according to 2025 data from analytics firm Kpler, but engaging in further economic warfare with Beijing, a major exporter to the US including of vital rare-earth minerals, risks retaliation against Washington.
When asked if the United States could target China for doing business with Iran, Bessent said many conversations were best to have in private.
"Keep in mind that the Chinese get 50% (of their) energy... from the Gulf. So it would do them a big service to get with the programme," he said.
China's embassy in Washington said "sanctions and pressure do not help resolve the problem".
"China calls on the relevant parties to take responsible actions and resolve the issue through political and diplomatic means," according to an embassy spokesperson. Offers of Iranian crude to Chinese buyers have already declined and prices have jumped this week as the US blockade on Iranian ports – reimposed on July 13 – has cut Tehran's shipments, trade sources told Reuters.
Reuters