Iran Promises Strong Military Response Amidst U.S. Economic Pressure

Iran warned of a significant military reaction on Friday as the United States initiated a new phase of economic warfare against the country. The Trump administration is gearing up to impose what it describes as the “toughest sanctions in history,” part of a broader effort that U.S. Treasury Secretary Scott Bessent claims will lead to the downfall of the Iranian regime.

President Donald Trump emphasized on Friday that while economic pressure is escalating, military options are still very much a possibility. He pointed to the current state of Iran’s military forces, the country’s struggling economy, and the U.S. blockade in the Strait of Hormuz as indicators of the mounting pressure on Tehran.

When asked if the economic tactics limited military options, Trump firmly responded, “No, not at all.” He stated they are simply observing the situation’s developments, highlighting Iran’s financial struggles, lack of naval and air capabilities, and soaring inflation at 350%.

Trump also mentioned that the United States has “total control” in the Strait of Hormuz, claiming it extends significantly over surrounding land areas.

According to Trump, “They would love to make a deal, but they’re not ready to make the right deal, in my opinion.”

The warning from Iran was echoed by Armed Forces Chief of Staff Maj. Gen. Ali Abdollahi, who indicated that Iran is ready to respond across various military domains to what he described as enemy “miscalculations” or threats.

Abdollahi stated, “With comprehensive, intelligent and up-to-date readiness in all areas — ground, naval, air, air defense, space and cyber — [Iran’s armed forces] will confront any miscalculation and conventional or modern threats by the enemies with revolutionary, forceful, regret-inducing, and devastating responses,” during a message for Iran’s Defense Industry Day.

Iranian President Masoud Pezeshkian also issued a warning, stressing the need to end the conflict while Iran remains in a “position of power and dignity.” He firmly stated, “We will under no circumstances bow to bullying, and there is no doubt about that.”

This latest threat comes in the wake of Trump’s announcement of an “ECONOMIC D-DAY” after the breakdown of recent negotiations and renewed military actions by the U.S.

Trump took to social media to share that no one has provided Iran with a better chance for a deal than he has, lamenting that they have “tragically” failed to seize it. He elaborated that governments and businesses worldwide must be aware that aiding Tehran in any capacity could trigger “TREMENDOUS Economic Consequences.”

Bessent outlined the economic strategy as a coordinated “one-two punch” and warned that countries and companies continuing trade with Tehran would have to choose sides: “You are either with us or against us.”

“We are going to squash the economy of this murderous regime,” he declared on CNBC.

Details regarding the impending sanctions are expected to be shared on Monday, with Bessent asserting confidence in the approach and its potential to decimate Iran’s economy.

He also implied that this enhanced economic pressure might reduce the likelihood of military action but didn’t dismiss military options altogether.

Vice President JD Vance characterized the situation as entering a “new phase” where economic measures are the primary tool available following U.S. military operations degrading Iran’s forces.

“Do they want to have their economy strangled for the rest of time or do they want to have a better relationship with the West?” he posed.

Vance acknowledged that Iran might retaliate economically but argued the balance of pressure now favors the U.S.

Signs of economic strain in Iran are becoming apparent, particularly in the oil trade, which is critical for its finances. Washington’s measures have significantly reduced Tehran’s exports while bolstering non-Iranian energy supplies from the Gulf.

China, the largest buyer of Iranian oil, has drastically cut imports — from around 1.4 million barrels per day last year to an estimated 534,000 barrels per day this August.

Meanwhile, U.S. operations in the Strait of Hormuz have reportedly redirected numerous commercial vessels and managed to maintain significant oil flow despite attempts to block Iran.

U.S. officials noted that around 15 to 20 tankers navigate through the designated southern channel each night, contributing nearly ten million barrels of oil daily, which is about half of what previously flowed through the strait.

Amid these developments, Iranian officials are also acknowledging the ongoing economic challenges. Pezeshkian recently admitted that inflation and hardships are pressuring Iran, suggesting that there should be a reconsideration regarding prolonged hostilities.

In line with this, Parliament Speaker Mohammad Bagher Ghalibaf indicated Tehran must prepare for the anticipated economic pressures ahead, stressing the need for stronger economic ties with neighboring Iraq and reduced reliance on the U.S. dollar.

Foreign Minister Abbas Araghchi, on the other hand, attempted to downplay the new sanctions strategy, referring to previous American pressures that he believes have failed.

“We have seen this movie before,” he said, implying that today’s pressures would ultimately be ineffectual as well.

Despite some calls for de-escalation, Iran’s military leaders advocate a more robust military strategy. Senior commanders are pressing for expanding offensive and defensive capabilities to prepare for future threats.

IRGC commander-in-chief Maj. Gen. Ahmad Vahidi claimed on Friday that Iran must rapidly enhance its capabilities and consider them the “only smart and effective strategy” against current and future dangers.

As for Trump, he reiterated that the U.S. still retains significant military options while moving into a new economic strategy stage.

In response to direct questions, he stated, “No, not at all” when asked if military actions against Iran had become limited.