Iranian military leaders are threatening a “devastating” response to new U.S. pressure as Tehran expands regional trade ties and tightens domestic controls ahead of President Donald Trump’s planned campaign of unprecedented economic isolation.
By yourNEWS Media Newsroom
Iran is preparing for a new phase of confrontation with the United States on both the economic and military fronts, warning of severe retaliation while attempting to reinforce trade relationships that could become targets of President Donald Trump’s threatened “economic D-Day.”
Maj. Gen. Ali Abdollahi, chief of staff of Iran’s Armed Forces, said Friday that Tehran was prepared to respond across virtually every domain if it faced additional threats.
“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 said, according to Iranian state media. Reuters also reported the remarks.
The military warning comes as Iran simultaneously works to protect its economy from a U.S. campaign designed to isolate Tehran from international trade, finance and energy markets.
Iranian officials announced that they had finalized a preferential trade agreement with Oman, CBS News reported Friday, as Tehran seeks deeper economic connections with neighboring countries ahead of the anticipated U.S. measures.
Iranian Parliament Speaker Mohammad Bagher Qalibaf also traveled to Baghdad and urged stronger commercial cooperation with Iraq.
Addressing Iranian and Iraqi businesspeople, Qalibaf portrayed economic activity as part of the broader confrontation with Western sanctions, describing business leaders as “soldiers and commanders” on an economic battlefield and calling for closer cooperation to overcome what he called “unjust sanctions.”
Qalibaf also acknowledged that Iran’s military capabilities alone would not be enough to sustain the country if its domestic economy deteriorated.
Reuters reported that he warned Iran could not depend solely on military power while its population struggled with hunger and economic activity weakened.
Those efforts follow Trump’s announcement of what he described as the “MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY.”
Trump said the United States would wage “Economic Warfare and Isolation on an unprecedented scale” against Iran and characterized the coming campaign as an “economic D-Day.”
He also warned governments and businesses against helping Tehran withstand the pressure.
Countries providing Iran with “any type of lifeline” would face “TREMENDOUS Economic Consequences,” Trump said.
The president identified a broad range of potential targets, including financial institutions, businesses, airports, government entities, oil-smuggling networks, cash-transfer systems, exchange houses, ship registries and front companies.
Treasury Secretary Scott Bessent is expected to provide more details Monday on how the administration intends to implement the strategy.
Reuters reported that Bessent said Thursday the measures would be outlined Monday, while NPR reported that he is expected to explain the specifics of Trump’s “economic D-Day” during a press conference.
Bessent has characterized the initiative as a coordinated attempt to economically isolate Iran while extending pressure to foreign governments, companies and financial institutions that continue helping Tehran conduct business.
Vice President JD Vance said Thursday that the conflict had entered a different stage in which economic tools would become increasingly important.
“The most effective tool that we have is the economic pressure that we can apply,” Vance said, according to CBS News.
Executing that strategy could prove complicated because Iran remains economically intertwined with several important regional and international partners.
China is Iran’s largest oil customer and has opposed Washington’s expanding pressure campaign, instead calling for a negotiated settlement.
Reuters reported that Beijing continues to purchase more Iranian oil than any other country and has advocated diplomacy rather than additional sanctions.
Iraq also maintains extensive economic connections with Iran, while Oman has longstanding commercial and diplomatic ties with Tehran.
The Trump administration’s approach seeks to transform those relationships into leverage by forcing governments and private entities to choose between continued economic dealings with Iran and possible consequences from the United States.
Inside Iran, authorities are also moving to impose tighter restrictions as military and economic pressure increases.
The Iranian parliament passed legislation this week that could impose tougher penalties on citizens who communicate with foreign media outlets, organizations or individuals without government authorization, according to CBS News.
The measure has not yet become law and requires additional approval.
If enacted, certain unauthorized contacts with U.S. news organizations, foreign embassies and other foreign institutions could carry prison sentences of as long as two years.
The proposal would also establish penalties for certain educational and research activities conducted with foreign entities.
Activities deemed incompatible with Iranian culture could result in sentences of up to 10 years, according to CBS News.
Iran already maintains laws restricting cooperation with foreign-backed Persian-language news organizations, including Iran International, BBC Persian and Voice of America’s Persian-language service.
Iranian authorities have defended the proposed expansion of those restrictions as necessary to counter foreign intelligence operations and infiltration.
The internal crackdown is unfolding as the economic effects of the conflict place increasing strain on the country.
Reuters reported that Iran is experiencing high inflation, currency weakness and energy shortages, while damage to infrastructure from the war has created additional economic difficulties.
Some Iranian officials have openly acknowledged those pressures while maintaining that Washington will not be able to force Tehran into capitulation.
Iranian President Masoud Pezeshkian has also publicly discussed ending the war, suggesting that reaching an agreement while Iran could still claim strength and dignity would be preferable.
Fox News correspondent Jonathan Hunt reported Friday that Pezeshkian said it would be better to end the war “today” while Iran remained in a position of power.
Pezeshkian also accused the United States of attacking Iranian schools, hospitals and other infrastructure.
Hunt described Pezeshkian as belonging to Iran’s more moderate political faction and reported that the harder-line bloc associated with the Islamic Revolutionary Guard Corps appeared, at least for the time being, to retain greater influence over the country’s response.
Those differing messages illustrate the pressures confronting Tehran as the war approaches the six-month mark.
Iran’s military leadership is warning that any new threat could trigger “crushing, punishing and devastating responses,” while other officials are pursuing expanded trade with Oman and Iraq, acknowledging economic weaknesses and discussing the possibility of bringing the war to an end.
Washington, meanwhile, is preparing to broaden the confrontation beyond conventional military operations by targeting the international economic relationships that allow Iran to sell oil, move money and maintain commercial ties abroad.
The next phase of the conflict is therefore increasingly centered on whether Tehran can preserve those economic connections as the Trump administration attempts to make continued business with Iran substantially more costly for governments, financial institutions and companies around the world.
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