US expands 'Operation Economic Outcast' sanctions against Iran

Iran's leaders acknowledge the economic impact of the ongoing war with the United States, with the supreme leader urging the government to address the hardships caused by sanctions and economic decline. Foreign trade has reportedly shrunk by one-third due to American sanctions and blockades. Despite this, Tehran vowed to withstand US pressure, pursue diplomacy, and maintain control over the Strait of Hormuz, a strategic waterway that gives Iran leverage to disrupt global energy markets.

The government emphasized addressing economic pressures, including curbing inflation, managing markets, creating jobs, and reducing dependence on the dollar. However, negotiations have stalled, and the US has intensified its efforts to punish Iran financially with what was called an "economic D-Day." Washington has warned countries to cut business ties with Iran or face secondary sanctions, though major trade partners like China and India remain unaffected.

The Treasury Department stopped short of imposing penalties on major Iranian trade partners, avoiding potential repercussions for the US and global economies. The US also sanctioned an entity in Hong Kong and a person linked to Iran's Bank Melli. Iran's supreme leader called for addressing economic and livelihood challenges like inflation, unemployment, and price management, while President Masoud Pezeshkian noted that Iranian exports and imports had slumped nearly 35% due to US sanctions.

Qatar and Pakistan helped broker a June memorandum of understanding that led to a brief ceasefire, but disagreements over the Strait of Hormuz caused it to unravel. The US military claims to have cleared sea mines from the strait, while Iran maintains that the waterway remains closed to ships without Iranian permission.