Iran vows 'devastating' response as U.S. threatens toughest ever economic hit

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.Iran's Parliament Speaker, Mohammad Baqer Qalibaf, the country's main negotiator in mediated talks 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 in neighbouring ‌Iraq, accusing ⁠the U.S. and Israel of resorting to what he said was economic and "cognitive" warfare. Published - August 21, 2026 09:59 pm IST