Hormuz is our territory: Trump's warning as Iran vows devastating response

Iran warned it would answer fresh US threats with a devastating response as Washington prepared tougher sanctions. The standoff is deepening pressure on Tehran, unsettling Hormuz shipping and lifting oil prices.

In Short

• Washington plans sweeping sanctions as conflict deepens pressure on Tehran
• Iran says new US threats will invite crushing responses across domains
• Trump warned Iran's trade partners they could face economic consequences

Iran has warned that any fresh US threats will draw a “devastating” response after the Trump administration vowed to impose what it called the toughest financial sanctions in history in an effort to pressure Tehran and topple its leadership.

US Treasury Secretary Scott Bessent said he would announce details of the new sanctions on Monday. President Donald Trump has also warned that countries providing “any type of lifeline to Iran” could face economic consequences.

The escalation comes as the nearly six-month-old US-Israel war with Iran continues to weigh on Tehran's economy, disrupt shipping through the strategically vital Strait of Hormuz and push global oil prices higher.

Iran's Armed Forces chief of staff, Major General Ali Abdollahi, said Tehran was prepared to respond across multiple domains.

“With preparedness across land, sea, air, air defence and cyberspace, Iran's armed forces will respond to the enemy's new threats with crushing, punishing and devastating responses,” Iranian media quoted him as saying.

Iran has suffered severe damage to its economy and conventional military capabilities during the conflict, but it retains missile and drone capabilities that could threaten oil tanker traffic through the Strait of Hormuz and regional targets.

TRUMP SAYS IRAN NOT READY FOR THE RIGHT DEAL

Trump said on Friday that Iran was not yet ready to make what he described as the “right deal”, while indicating that Washington was watching developments before deciding its next steps.

“It just means that we're seeing what happens,” Trump told reporters when asked whether US military options against Iran were limited.

“We have total control of that entire region having to do with the Strait of Hormuz, and that means well into it, the land areas,” Trump said. “So, they would love to make a deal, but they're not ready to make the right deal, in my opinion.”

At a rally in Myrtle Beach, South Carolina, Trump also reiterated that Iran must never be allowed to obtain a nuclear weapon.

“We cannot let them have a nuclear weapon, we cannot let Iran have a nuclear weapon, or you will see some very bad things,” he said.

“We went down and we stopped them; they will never have a nuclear weapon,” Trump added.

Trump also made an extraordinary claim about the strategic waterway, saying: “I view the Strait of Hormuz as an American territory right now, it's an American territory.”

US VOWS TOUGHEST SANCTIONS IN HISTORY

Bessent said the planned measures would form part of an intensified economic campaign against Tehran.

“It is a one-two punch. We have the blockade, and we are going to have the toughest sanctions in history,” Bessent said, adding, “We are going to collapse this regime.”

Trump has separately warned countries against providing economic support to Iran, raising the prospect of secondary sanctions on Tehran's trading partners.

China, which is Iran's largest buyer of seaborne oil, has rejected the US approach. Beijing's embassy in Washington said: “Sanctions and pressure do not help resolve the problem” and called for diplomacy.

More than 80% of Iran's shipped oil went to China in 2025, according to Kpler data cited by Reuters. Further US pressure on Beijing could risk retaliation at a time when Washington and China are already locked in disputes over trade and critical minerals.

IRAN ADMITS SANCTIONS ARE HURTING ECONOMY

Iranian leaders have responded defiantly to the US pressure but have also acknowledged the severe economic strain.

Parliament Speaker Mohammad Baqer Qalibaf, who is Tehran's main negotiator in mediated talks with Washington, said Iran must prepare to withstand the sanctions.

“We must make plans to deal with the unjust sanctions so that we can overcome them,” he said in neighbouring Iraq.

But Qalibaf also warned that military strength alone would not be enough to sustain the country.

“No matter how much military power we have, we won't survive if people are hungry and we don't have financial turnover, economic growth and national production,” he said.

Iran has lived under US sanctions for decades, but the latest pressure comes as the country grapples with high inflation, a weakening currency, energy shortages and infrastructure damage.

OIL PRICES RISE AS HORMUZ REMAINS KEY FLASHPOINT

Oil prices rose on Friday after Washington's sanctions threat, as traders anticipated tighter supplies and continued disruption to shipping. Brent crude settled at $94.39 a barrel, while US West Texas Intermediate settled at $87.06.

The Strait of Hormuz has become a central flashpoint in the conflict. Before the war, the narrow waterway carried roughly one-fifth of global oil trade. Shipping traffic has since fallen sharply, with only seven commodity ships recorded passing through the strait on Thursday, according to Kpler data cited by Reuters.

Iran and Oman have held separate talks aimed at restoring navigation through the strait, while the US has opposed any arrangement that would impose a toll on ships.

NATO's top commander, US Air Force General Alexus Grynkewich, also convened a video conference of allied defence chiefs to discuss ways to support freedom of navigation through Hormuz. A spokesperson stressed that the effort was not a NATO mission, but said the alliance's capabilities made it sensible for NATO to facilitate coordination.

A COSTLY AND INCREASINGLY UNPOPULAR WAR

The conflict has inflicted heavy damage on Iran, but Trump has yet to achieve all the objectives he set at its outset, including dismantling Iran's nuclear programme and creating conditions for the overthrow of its clerical leadership.

The war has also driven up fuel prices and weighed on Trump's domestic popularity, with a Reuters/Ipsos poll this week showing his approval at its lowest level of his current term.

The US and Iran have announced ceasefire arrangements twice, in April and June, but efforts to restore normal shipping through Hormuz have yet to produce a lasting settlement.

For now, Washington is shifting greater emphasis toward economic pressure while Tehran insists it can withstand the sanctions and warns that further escalation could trigger a military response.

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