Iran Vows Tougher Response as U.S. Sanctions Squeeze Economy

Iran pledged to intensify efforts to counter mounting U.S. sanctions and economic pressure, while a senior official warned Washington that any further attacks would trigger a faster and more severe Iranian response.

Six months after U.S.-Israeli strikes on Iran sparked the conflict, fighting remains largely deadlocked. A preliminary ceasefire reached in June has unraveled, while diplomatic efforts to revive peace negotiations have made little progress.

Military tensions escalated again after a relatively quiet August. U.S. Central Command said it struck three Iranian vessels on Saturday after Iran’s Islamic Revolutionary Guard Corps launched 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 or security would receive a “faster, heavier and more painful response.”

Meanwhile, Supreme National Security Council Secretary Mohsen Rezaei said Iran plans to establish a restricted zone covering parts of the Gulf outside the Strait of Hormuz. Ships entering the area would be placed on a sanctions list, although officials provided few additional details.

Iran is also confronting severe economic pressure from U.S. sanctions, an oil-export blockade, inflation, unemployment and currency volatility. Qalibaf said protecting production and household livelihoods had become another major front in the conflict.

Economy Minister Ali Madanizadeh said Tehran would pursue domestic economic reforms rather than change policy because of U.S. pressure. Deputy Economy Minister Morteza Zamanian separately said Iran’s “Economic War Headquarters” was expanding efforts to address wartime economic problems.

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

The Strait of Hormuz remains another major flashpoint. U.S. Energy Secretary Chris Wright said more than 9 million barrels of oil per day were currently passing through the waterway, with alternative pipelines helping bring total flows to roughly two-thirds or more of pre-conflict levels.