DUBAI: Iran has pledged to intensify efforts to address economic problems caused by US sanctions, as tensions with Washington continue to escalate and a senior Iranian official warned of a “painful response” to any further attacks.
Six months after US-Israeli strikes triggered the conflict, the situation appears largely deadlocked. A preliminary ceasefire agreement reached in June has collapsed, while diplomatic efforts to revive peace talks have made little progress.
After a relative lull in military activity during August, hostilities have resumed. US Central Command said it struck three Iranian tankers on Saturday after Iran’s Islamic Revolutionary Guard Corps launched ballistic missiles at two US Navy ships.
Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that any further attacks on Iran would trigger a stronger response.
“From now on, any attack against Iran’s interests and security will receive a faster, heavier and more painful response,” he said in a speech published on his Telegram channel.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said a restricted zone would be announced around the Strait of Hormuz in the coming days. Ships entering the designated area could be placed on a sanctions list, although details of the plan remained unclear.
Sanctions squeeze Iran’s economy
Iranian officials say the US campaign to restrict the country’s oil exports and prevent sanctions evasion is placing increasing pressure on the economy.
Qalibaf said Iran’s key battle was now not only military but also economic, with currency volatility, inflation, unemployment and market management emerging as major challenges.
He said Iranians could tolerate economic hardship but not poor management or inaction, calling for swift government measures.
Economy Minister Ali Madanizadeh said Iran would respond to US economic pressure through domestic reforms and rejected the idea that sanctions would force Tehran to change its policies.
Deputy Economy Minister Morteza Zamanian separately said the ministry’s “Economic War Headquarters” was intensifying efforts to address economic problems resulting from the conflict.
Kharg Island remains operational
Iran, the third-largest producer in OPEC, previously exported around 90% of its crude through the Kharg Island oil terminal. Oil flows have been disrupted since a US blockade of Iranian oil exports began in mid-April.
US Central Command said it had redirected 92 commercial vessels, disabled three and boarded two as part of efforts to enforce the blockade.
Iranian Oil Minister Mohsen Paknejad said Kharg Island had been hit around 550 times in recent months but remained operational.
US President Donald Trump also recently posted an AI-generated video depicting Kharg Island being destroyed, prompting Iranian authorities to warn of a strong response if the facility is attacked.
The conflict has also raised concerns over oil flows through the Strait of Hormuz, a critical global energy chokepoint. Before the conflict, around one-fifth of global oil supplies passed through the waterway.
US Energy Secretary Chris Wright said oil was still moving through the strait, with US transits averaging more than 9 million barrels per day. He said flows, including alternative pipeline routes, had recovered to roughly two-thirds or more of pre-conflict levels.
Meanwhile, US Central Command said it struck three Iranian vessels on Saturday, including one near Kharg Island, following the Iranian missile attacks on two US Navy ships.
By Reuters
