Trump claims Iran 'collapsing' as US threatens 'economic D-Day'

U.S. President Donald Trump declared on Monday that Iran was "collapsing" as Washington unveiled plans for a new economic pressure campaign against Tehran. The two nations are currently locked in a stalemate, with Iran maintaining control of the Strait of Hormuz and the United States persisting with a naval counter-blockade. Under domestic political pressure due to the economic consequences of the conflict, Trump has shifted away from military action and is now focusing on economic levers.

Treasury Secretary Scott Bessent warned that any country supporting Iran would become a "global pariah," claiming that the US has dismantled Iran's military capabilities and destroyed nearly 100% of its military factories. Iran responded with defiance, accusing the US of admitting military defeat and warning nations against aiding Washington.

The conflict, which began in February, has primarily centered around the Strait of Hormuz, a crucial route for global oil and gas supplies. Since the start of the war, Iran's oil exports have plummeted from two million barrels a day to just 0.4 million barrels, driving up global inflation and domestic pressure on Trump ahead of the mid-term elections.

The Islamic republic has remained under the weight of decades-long international sanctions and has continued to export oil, mostly to China. Diplomatic efforts, led by mediators, have attempted to negotiate an end to the conflict, with Pakistan's army chief set to visit Iran and Oman's foreign minister also expected to arrive on Tuesday.