The top commander of Iran's Revolutionary Guards, Major General Mohammad Ali Jafari, said on Sunday Iran would resist and defeat a US "psychological war" and sanctions against its vital oil sector.

"America has launched an economic and psychological war as a last resort ... But America's plots and its plans for sanctions will be defeated through continued resistance," Jafari said at a rally marking the 1979 seizure of the US Embassy in Tehran, which was broadcast live on state television.

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