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. Washington prepared for sanctions that US Treasury chief Scott Bessent said he would detail on Monday. President Donald Trump earlier warned 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 defense 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. The US and Iran have twice announced ceasefire deals, in April and June, aiming to restore the free flow of ships through Hormuz on a path towards ending the nearly six-month-old conflict, but both quickly crumbled. Bessent told CNBC he would "talk about exactly what we're going to do" on Iran at a press conference on Monday. "We are going to collapse this regime. It is time for our allies and the rest of the world to make a decision," he said, describing a naval blockade reimposed on Iran in July and the "toughest sanctions in history" as a "one-two punch". Iran has weathered near-continuous economic sanctions for nearly 50 years, since the Islamic Revolution of 1979, but its people are suffering high inflation, a weakening currency and energy shortages along with damaged infrastructure. Some Iranians interviewed by Reuters have said more economic punishment could increase hardship, weaken the clerical establishment and prompt unrest, although there has been no sign of that since a deadly crackdown on protests in January. Before Bessent spoke, Iran's foreign ministry said US sanctions would not "create even the slightest hesitation in Iranians’ determination to safeguard Iran’s independence, dignity and national sovereignty."
