Iran says US sanctions will achieve nothing

Kuwaiti Prime Minister Sheikh Ahmad al-Abdullah al-Sabah inspecting the damaged airport in Kuwait. [AFP].

Iran's president insisted on Wednesday that the United States will achieve nothing with its sanctions campaign after Washington laid out plans to collapse the country's economy.

Almost six months into their war, the two sides are locked in a stalemate, with Iran keeping the key Strait of Hormuz shut and Washington persisting with a naval counter-blockade of Iran.

Under political pressure at home over the impacts of the conflict, US President Donald Trump has pivoted away from military action to economic levers, expanding sanctions and warning of consequences for countries that do not join.

But Iran's leaders have remained defiant, saying they have a two-year plan to counter the pressure, while Iran's army said Wednesday it had rebuilt or replaced all weapons systems damaged during the fighting.

"America will not achieve anything with economic pressure at this stage, just as it was unable to achieve anything in the war," Iranian President Masoud Pezeshkian said Wednesday, according to the country's ISNA news agency.

"We will stand firm against economic pressures, as we have done so far and will continue to do."

Army spokesperson Mohammad Akraminia told state television that the military had replenished its combat capabilities with the reconstruction of all damaged weapons systems and import of new equipment from abroad.

On Monday, US Treasury Secretary Scott Bessent claimed the US had "dismantled Iran's military capabilities, destroyed nearly 100 percent of its military factories, and buried its nuclear programme".

The US and Israel launched the war against Iran in late February, vowing to end an alleged Iranian nuclear weapons programme and threatening to topple the regime in Tehran.

Iran responded by firing on US allies in the Gulf and closing the Strait of Hormuz, a vital shipping route for global supplies of oil and gas.

The waterway's closure has strained the world economy as shipments fail to reach major markets, pushing up the price of oil and placing pressure on Trump ahead of mid-term elections in November.

Repeated rounds of negotiations brokered by mediators have failed to produce a lasting diplomatic settlement, with a ceasefire collapsing last month.