Iranian President Masoud Pezeshkian on Sunday, 23 August declared that Iran is engaged in an ‘all-out’ economic, military, and security war with what he called the country’s ‘enemies,’ as Washington escalates its pressure campaign against Tehran. Speaking in a nationally televised address, Pezeshkian vowed that despite the unequal nature of the conflict, Iran was ‘standing and making efforts to serve the people.’

Pezeshkian’s Warning to the Nation

In his speech, President Pezeshkian acknowledged the severity of the economic strain on Iranian citizens but insisted the government was making ‘wholehearted’ efforts to reduce inflation and resolve the public’s financial difficulties. The remarks signal a deliberate attempt by Tehran’s leadership to frame the crisis as an externally imposed conflict rather than a domestic policy failure — a framing consistent with Iranian state messaging over the past decade of sanctions.

Iran’s Foreign Minister Pushes Back on Washington

Iranian Foreign Minister Seyed Abbas Araghchi echoed the defiant tone, stating in a separate Sunday statement that the United States ‘has no other way but to speak respectfully with the Iranian people.’ He described the latest US economic operation as ‘a recurring scenario and the same bullying that always occurs in US policies,’ adding: ‘In a sense, it is a repetitive film that we have watched over and over and know how to deal with.’

Trump’s ‘Economic D-Day’ Declaration

The escalation follows a Wednesday post by US President Donald Trump on Truth Social, in which he announced ‘the most crushing economic operation ever taken’ against any country providing a lifeline to Iran. Trump called the move ‘Economic Warfare and Isolation on an unprecedented scale,’ labelling it an ‘ECONOMIC D-DAY.’ The announcement marks a sharp pivot from the diplomatic track the two countries had briefly pursued.

The Collapsed MoU and Stalled Negotiations

Notably, on 18 June, the United States and Iran had signed a memorandum of understanding (MoU) aimed at ending regional hostilities, including in Lebanon. Under its terms, both sides were to hold negotiations within 60 days — a window that closed on Monday — to finalise a comprehensive agreement. The fate of those talks now remains deeply uncertain following last month’s escalation between the two nations.

Iran Warns Neighbouring Countries

A senior Iranian security official, Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, on Saturday warned neighbouring and other states against joining the US pressure campaign. Speaking to state-run IRIB TV, Rezaei said Tehran would regard any such participating country as an ‘enemy,’ though he added that Iran would first seek dialogue to persuade them not to join what he characterised as Washington’s ‘economic war.’ This comes amid broader regional anxiety about being caught between US sanctions architecture and Iranian retaliation.

With the 60-day MoU negotiation window now expired and both sides hardening their rhetoric, the diplomatic path forward appears increasingly narrow.