US to tighten economic screws on Iran to break war deadlock
The US on Monday was expected to broaden the scope of secondary sanctions on firms and countries that do business with Iran , as Washington seeks to isolate the regime's economy in an effort to break the deadlock in the war. The move was meant to serve as a final notice to countries to sever their business ties with Iran as the US steps up its economic pressure campaign, the White House said.…
The United States plans to intensify economic sanctions on Iran to spur the breakdown of the ongoing conflict, according to White House officials. This aggressive economic pressure campaign aims to isolate Iran's economy and ultimately force countries to sever ties with the regime, as reported by the White House. The administration's strategy follows the failure of prior military operations and naval blockades to reopen the strategically vital Strait of Hormuz, which accounts for approximately 20% of global energy supplies.
Treasury Secretary Scott Bessent is set to provide further details on the administration's plans in a press conference later on Monday.
Bessent emphasized that the objective is to sever all economic lifelines supporting the "tyrannical regime" until Iran stands alone. He described the announcement as an "economic D-Day" and warned that countries must choose sides with the US or face becoming "global pariahs." While the impact on major economies such as China, India, and Turkey remains uncertain, Bessent singled out nations facilitating Iran's energy exports, financial transfers, aviation, shipping, and banking as potential targets.
The US has gained support for these efforts with the UAE's decision to sever trade and financial ties with Iran following an attack by Iranian missiles. Iran's currency reached a record low against the dollar prior to the announcement, with the rial declining 4.5% since President Trump hinted at further economic pressure last week. Inflation has surged above 80% in Iran, a nation of 93 million people, while oil exports from the country have nearly ceased, significantly reducing government revenue.
Iran has vowed retaliation against countries joining the US economic campaign and warned that not a single drop of oil will be exported, either through the Strait of Hormuz or from other sources, according to Mohsen Rezaee, secretary of Iran's Supreme National Security Council. Tanker traffic through the Strait of Hormuz has decreased since the US and Israel launched coordinated strikes against Iran on February 28.
Meanwhile, a tanker was hit by an unknown projectile west of the Saudi port city of Yanbu, causing a fire on the vessel's main deck, with all crew members safe and accounted for. Despite these developments, Pakistan's army chief Field Marshal Asim Munir visited Iran on Monday for talks aimed at promoting regional peace and stability.
Oman's Foreign Minister, Badr Al Busaidi, was scheduled to visit Tehran on Tuesday to continue discussions on navigation through the Strait of Hormuz, as both Washington and Tehran remain at odds over resolving the ongoing conflict.
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