TEHRAN: Iran is refusing to back down as the United States prepares what Washington describes as its most aggressive sanctions campaign yet, with Tehran warning that it is prepared for a prolonged confrontation rather than accept American demands.
The latest escalation comes as the conflict between the United States and Iran enters a dangerous new phase. With military pressure increasingly being complemented by economic warfare, Washington is seeking to squeeze Tehran through sanctions, restrictions on oil trade and penalties against countries and companies that continue doing business with Iran.
Iran, however, has responded with defiance. Officials in Tehran have argued that the country has survived decades of sanctions and will continue resisting even if the economic pressure becomes considerably more severe.
Iran signals readiness for a long war
The message emerging from Tehran is that the conflict should not be judged only by immediate military or economic damage.
Iranian officials have repeatedly emphasised national resistance and warned that any attempt to force Tehran into surrender could produce a prolonged confrontation. Reuters reported that Iranian officials have threatened a “devastating” military response to the new sanctions, while senior figures have acknowledged that the country is facing serious economic difficulties.
The rhetoric reflects a broader Iranian calculation: accepting Washington's demands under extreme pressure could be viewed domestically as capitulation.
That makes the diplomatic space increasingly narrow.
For Tehran, the issue is no longer simply sanctions relief or negotiations over individual economic restrictions. It has become a question of sovereignty, military deterrence and the country's ability to resist American pressure.
Trump moves from military pressure to economic warfare
US President Donald Trump has increasingly presented economic pressure as the next major weapon against Iran.
US Treasury Secretary Scott Bessent has described the forthcoming campaign as an “economic D-Day”, with Washington seeking to isolate Iran from international financial and commercial networks. The administration has warned foreign governments, banks, companies and traders that continuing significant business with Tehran could expose them to American penalties.
The strategy is designed to create a difficult choice for countries that maintain economic relations with Iran.
They can continue trading with Tehran and risk losing access to parts of the US-led financial system, or reduce their dealings with Iran and potentially deepen the economic isolation facing the Iranian government.
This secondary-sanctions approach could be particularly significant for countries that remain important buyers of Iranian oil.
Tehran says sanctions will not force surrender
Iran's response has been that the United States is repeating a strategy that has failed before.
Iranian Foreign Ministry spokesman Esmaeil Baghaei has accused Washington of attempting to impose its authority beyond US borders, describing the sanctions threat as an assault on the sovereignty of other countries. Iranian Foreign Minister Abbas Araghchi has also dismissed the latest pressure campaign as something Tehran has seen before.
That argument is central to Tehran's position.
Iran has lived under extensive American sanctions for decades. While those measures have imposed enormous economic costs, they have not persuaded successive Iranian governments to accept Washington's core demands.
The Trump administration is betting that the combination of military pressure, a naval blockade and unprecedented financial restrictions will eventually produce a different result.
Strait of Hormuz becomes the critical pressure point
One of the most dangerous dimensions of the confrontation remains the Strait of Hormuz, through which a major share of the world's energy supplies normally passes.
Iran has repeatedly threatened to disrupt shipping through the waterway if the pressure campaign escalates. Reuters reported that Tehran has already affected traffic through the strait, while Iranian threats have raised concerns about a broader disruption of global oil supplies.
Any prolonged shutdown or serious disruption could have consequences far beyond the Middle East.
Higher oil prices would increase transportation and manufacturing costs worldwide, potentially adding to inflation in economies already dealing with elevated energy and food prices.
For that reason, Hormuz is not simply a military flashpoint. It is also an economic pressure valve that Iran can potentially use against the United States and its allies.
Iran has several ways to retaliate
Tehran's options extend beyond conventional missile attacks.
According to Reuters, Iranian responses could include disrupting oil shipments, targeting US military facilities in the region and threatening critical infrastructure in Gulf states that cooperate with Washington. Cyber operations and the use of regional allied groups are also among the potential avenues of escalation.
That creates a complicated strategic calculation for Washington.
The US may have overwhelming military capabilities, but Iran does not need to defeat the American military in a conventional war to impose costs.
Attacks on shipping, energy infrastructure, regional military bases or digital networks could create economic and political pressure without requiring Tehran to win a direct military confrontation.
Gulf countries face a difficult choice
Washington's secondary sanctions also place America's regional partners in a difficult position.
The United Arab Emirates, one of Iran's most important trading partners, has already suspended trade and financial transactions with Tehran amid the escalating pressure. Iran has warned countries cooperating with the new US sanctions that they could face retaliation.
For Gulf states, the dilemma is particularly serious.
They depend heavily on the US security umbrella, but they also fear becoming targets in a wider confrontation with Iran.
A direct attack on energy facilities, desalination plants, ports or infrastructure could have consequences for regional economies even if the countries themselves are not formally involved in the conflict.
China and India face a major test
The sanctions campaign could also create tensions between Washington and major Asian economies.
The US has warned countries that continue dealing with Iran that they could face secondary sanctions. China, a major buyer of Iranian oil, has rejected unilateral American sanctions and criticised Washington's approach.
India also faces a delicate balancing act because its energy security, trade interests and diplomatic relationships span both Washington and Tehran.
Any major disruption in Iranian oil exports or the Strait of Hormuz could affect global crude prices and therefore India's import bill.
This means the consequences of the US-Iran confrontation are likely to extend well beyond the battlefield.
Economic pressure is already hurting ordinary Iranians
Iran's defiance does not mean that sanctions have no effect.
The country's economy is facing severe pressure, including currency depreciation and rising prices. Recent reports say Iran's rial has fallen to a record low, while ordinary households are struggling to afford basic goods.
The central question for Washington is whether that economic pain will eventually translate into political pressure on the Iranian leadership.
History offers no simple answer.
Sanctions can weaken an economy, reduce government revenue and make daily life more difficult, but they do not automatically produce political capitulation. In some cases, they can instead strengthen nationalist sentiment and allow governments to portray the confrontation as a struggle against foreign coercion.
Iran's leaders appear to be betting on the latter.
Why the conflict could become a war of endurance
The emerging confrontation is increasingly less about one decisive military battle and more about endurance.
The United States has enormous economic and military resources and can impose sanctions on businesses around the world. Iran, meanwhile, has experience operating under sanctions and possesses geographic advantages, regional partnerships and the ability to threaten critical energy routes.
That creates a potentially prolonged contest.
Washington wants economic isolation to force Tehran back to negotiations on American terms.
Tehran wants to demonstrate that pressure will not produce surrender and that escalation will carry costs for the United States and its partners.
Neither side appears ready to make a major concession.
The diplomatic door is still open—but narrowing
Despite the aggressive rhetoric, diplomacy has not completely disappeared.
Iranian President Masoud Pezeshkian has continued to signal interest in resolving the conflict through negotiations, while the US has also indicated that a deal remains possible if Tehran accepts Washington's conditions. But the gap between the two sides remains enormous.
The challenge is finding an agreement that neither government has to present domestically as surrender.
For Iran, that could require sanctions relief and guarantees against future attacks.
For the United States, the agreement would need to address its concerns over Iran's nuclear capabilities, regional military influence and the Strait of Hormuz.
Until those issues are resolved, the confrontation is likely to continue shifting between military threats, economic pressure and diplomatic manoeuvring.
What happens next?
The immediate danger is that economic pressure triggers another round of military escalation.
If Iran retaliates against US interests or Gulf infrastructure, Washington could respond with additional military action. If the US tightens the blockade and sanctions further, Tehran could intensify pressure on shipping and energy markets.
That creates a cycle in which every new measure carries the risk of producing an even stronger countermeasure.
Iran's defiant message—that it can continue fighting for generations—therefore has significance beyond rhetoric. It signals that Tehran is preparing its population and political system for a long confrontation.
For Trump, the challenge is equally clear: can unprecedented economic pressure force Iran to compromise, or will it instead push the two countries into an even deeper and more dangerous conflict?
With the Strait of Hormuz at the centre of the confrontation and the US preparing its toughest sanctions yet, the answer could determine not only the future of the Iran war but also the stability of global energy markets.
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