Iran Vows Tougher Response as US Sanctions Squeeze Economy

Iran has pledged to intensify efforts to counter the economic impact of U.S. sanctions while warning Washington that any further attacks will trigger a faster and more severe military response.

Six months after U.S.-Israeli strikes on Iran, tensions remain high as diplomatic efforts struggle to revive a preliminary ceasefire reached in June. Military exchanges resumed after a relative lull in July, with U.S. Central Command saying it struck three Iranian tankers on Saturday after Iran’s Islamic Revolutionary Guard Corps (IRGC) fired ballistic missiles at two U.S. Navy ships.

Iranian Parliament Speaker Mohammad Baqer Qalibaf warned Sunday that Washington should recognize that the “rules of the game” have changed. He said future attacks on Iranian interests would receive a “faster, heavier and more painful response.”

At the same time, Tehran is confronting mounting economic pressure from U.S. sanctions and restrictions on Iranian oil exports. Qalibaf identified inflation, unemployment, currency volatility and market management as major domestic challenges, saying the government must address public concerns over livelihoods and production.

Economy Minister Ali Madanizadeh said Iran would respond through economic reforms rather than change its policies under U.S. pressure. Economy Ministry deputy Morteza Zamanian also said the government’s “Economic War Headquarters” was increasing efforts to address problems stemming from the conflict.

Iran, OPEC’s third-largest producer, previously exported about 90% of its crude through Kharg Island. Oil Minister Mohsen Paknejad said Sunday that the strategic export hub had been struck roughly 550 times in recent months but remained operational.

The Strait of Hormuz also remains a major flashpoint. Iran’s blockade has disrupted a route that handled about one-fifth of global oil supplies before the conflict, contributing to higher international fuel prices.

U.S. Central Command chief Admiral Brad Cooper said Saturday’s strikes were intended to impose a greater economic cost on the IRGC. Iran responded by threatening intensified attacks on U.S. military vessels.

Separately, Iran’s Tasnim news agency reported Sunday that the IRGC shot down a U.S. surveillance balloon over Erbil in northern Iraq. U.S. Central Command said no American personnel were harmed in Saturday’s attacks.