Iran has threatened to retaliate after the US announced another round of sanctions. Washington has threatened sweeping penalties against countries and businesses that refuse to cut economic ties with Tehran. But China – Iran's biggest oil customer – has rejected the sanctions as "illegal". Iran's economy minister has said the country has its own means of striking back. Meanwhile, Pakistan is not letting up on finding a diplomatic solution. Its army chief has held talks with Iranian leaders in Tehran, saying the meeting made "significant progress" towards de-escalation. Nick Harper reports from Washington DC and Hira Mustafa reports from Islamabad.