US pulls China punches in Iran ‘economic D-Day’ sanctions

Iran's economic sanctions are causing the regime to become more extreme, according to an Iranian political dissident. While the public is suffering from heavy economic pressures, this does not significantly impact those in leadership positions within the regime. Israeli authorities monitoring Iran's internal developments report an increase in economic damage across all sectors of society, leading to internal divisions among Iran's leadership.

Iran's President Masoud Pezeshkian is concerned about the effects on the general population, but the Islamic Revolutionary Guard Corps (IRGC) has adopted a more aggressive stance, preparing itself to weather the conflict and crack down on economic protests. Following the Trump administration's "Operation Economic Outcast" against Iran, US Treasury Secretary Scott Bessent stated that Iran's leadership is acknowledging that the pressure is working.

Iran and Oman are continuing consultations regarding the Strait of Hormuz to resume navigation and formulate a mechanism for managing vessel traffic. The two countries aim to preserve their sovereignty and rights while negotiating future arrangements. Washington is framing the Iranian-Omani move as a direct result of growing US economic pressure. However, Iran has attempted to distance the talks with Oman from the American track, stating that no direct negotiations took place between Iran and the United States.