Treasury Secretary to announce Iran sanctions as Tehran dismisses economic warfare threat

Iraq's President Nizar Al-Maliki confirmed that Iran had enabled some of Iraq's oil tankers to pass through the Strait of Hormuz, following multiple requests from Baghdad. The issue is intricate, according to Iraqi officials. Iraq is also utilizing alternate export routes via Turkey's Ceyhan port, Syria's Baniyas, and Jordan's Aqaba.

U.S. President Donald Trump, at a rally in Myrtle Beach, South Carolina, declared the Strait of Hormuz as "American territory" with "full control," and doubted the U.S.'s interest in a deal with Iran under such conditions. He reiterated that Iran "will never" acquire a nuclear weapon. Egypt's Foreign Minister Badr Abdel-Aty had a discussion with his Iranian counterpart Abbas Araghchi regarding de-escalation efforts in the region, U.S.-Iran negotiations, and potential re-establishment of the U.S.-Iran memorandum of understanding signed in June.

Abdel-Aty emphasized the significance of free navigation in the Gulf and security, while Araghchi shared Iran's perspective on the negotiations. Rezaei, Iran's Supreme National Security Council Secretary, stated on state TV that the disparity between the U.S.'s inability to reopen Hormuz and its claim of ownership is larger than the 7,000-mile gap between Washington and the Strait.

He declared a "post-American order" in the Gulf, asserting that Washington has given up hope on military strikes and trusts an economic blockade could succeed. Rezaei warned that if the U.S. persistently pursues an economic campaign, Iran would retaliate like an earthquake. He added that the reopening of Hormuz would be managed by Tehran with a fee and that Iran is prepared for operations but would act with wisdom.

Iran has only targeted military bases so far, but would strike U.S. oil and economic entities region-wide if tensions escalate further. On the Pakistan-Turkey-Saudi defense pact, Rezaei questioned why Iran should endorse an agreement it hasn't seen. Earlier in the week, Trump announced new sanctions targeting oil smuggling, financial transfers, exchange houses, ship registries, and front companies, urging allies to join in isolating Iran.

He emphasized Iran's 350% inflation and unpaid military personnel. Israeli Defense Minister Israel Katz criticized U.S. Ambassador to Turkey Tom Barrack's remarks, asserting they contradicted Trump's official stance. Katz explained that the IDF had recommended the strike on Syria's Abu al-Duhur airbase due to Turkish deployment concerns, and Syria had warned Israel's attacks are in violation of international law.