Iran has warned of a “crushing, punishing and devastating” response if the US imposes new sanctions on the country, as the Trump administration threatens what it describes as the toughest financial penalties in history.

Major General Ali Abdollahi, chief of staff of Iran’s armed forces, said the military was prepared to respond across land, sea, air, air defence and cyberspace. “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,” he said in comments reported by Iranian media.

The warning follows President Donald Trump’s threat to launch the “most crushing economic operation ever” against Iran.

Iranian Foreign Minister Abbas Araghchi dismissed the threat, saying: “This repetitive film is also doomed to failure.” He referred to previous US sanctions against Iran, saying Washington had threatened the “most crippling sanctions in history” 14 years ago.

“It failed,” he said. “We’ve seen this movie before; the same old story, just with different bullies,” Araghchi added.

US Threatens to ‘Collapse the Regime’

US Treasury Secretary Scott Bessent said on Friday that Washington intended to “collapse the regime”. He described the naval blockade reimposed on Iran in July and the planned sanctions as a “one-two punch”.

President Trump has also warned countries providing “any type of lifeline to Iran” that they could face economic consequences.

Bessent said he would “talk about exactly what we’re going to do” at a news conference on Monday.

Iran’s foreign ministry said new sanctions would not cause “even the slightest hesitation in Iranians’ determination to safeguard Iran’s independence, dignity and national sovereignty”.

Iran Says Weapons Production is Increasing

Iran’s acting deputy defence minister, Brigadier-General Shahrokh Shahram, said US strikes had failed to disrupt the country’s military supply chains.

“The enemy thought that by targeting a few points related to the Ministry of Defence, he could cut off our military supply chain and achieve results – unaware that we enjoy national participation in our military industry,” he said, according to Iran’s state broadcaster IRIB.

He said weapons production had increased rapidly since the beginning of the war.

“The outbreak of the imposed war has created a special incentive in Iran’s defense and military industries; if production was carried out regularly and uniformly before, now it has increased incredibly and exponentially,” he said.

Recent reports have suggested that Iran is rebuilding missile sites and other military infrastructure. The developments have reportedly raised concerns among Israeli defence and intelligence officials.

Iranian parliament speaker Mohammad Baqer Qalibaf, who has led negotiations with the US during mediation efforts, said Washington appeared to have changed its approach after failing to defeat Iran militarily.

“We must make plans to deal with the unjust sanctions so that we can overcome them,” he said, accusing the US and Israel of waging economic and “cognitive” warfare.

Ceasefires Fail to End War

The US and Iran have agreed two ceasefire deals since the conflict began, one in April and another in June. Both were intended to help restore normal maritime traffic through the Strait of Hormuz and bring an end to the nearly six-month-old war, but both agreements were short-lived.

The conflict began on 28 February. According to the Pentagon, thousands of Iranians and 18 US service members have been killed, while more than 750 US personnel have been wounded.

The latest exchange of threats comes as Washington prepares to announce further economic measures against Tehran, while Iran says it is prepared to respond.