{
  "id": 1090929,
  "title": "Iran business leader admits U.S. blockade will inflict more economic damage than war, and the ‘worst thing that could happen’ is trying to evade it",
  "url": "https://urgent.news/2026/08/15/iran-business-leader-admits-u-s-blockade-will-inflict-more-economic",
  "topic": "world",
  "section": "World",
  "published": "2026-08-15T17:32:32.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/08/15/iran-economic-crisis-us-naval-blockade-war-sanctions-hormuz-oil/"
  },
  "original_language": "en",
  "account": "President Donald Trump is intensifying his campaign to use economic sanctions against Iran as his military options become less viable, while the country's business community warns that the naval blockade will inflict severe economic damage. In an interview with Iran’s Khabar Online, Majidreza Hariri, head of the Iran-China Joint Chamber of Commerce, stated that the economic repercussions of the blockade far surpass those of a direct military confrontation. Hariri emphasized that the country's current economic crisis, exacerbated by the blockade, is more dire than during the 40-day war earlier this year. Consequently, Iran must find a way to end the blockade, whether through negotiations, concessions, threats, or even resuming hostilities against the U.S. Hariri cautioned that attempting to navigate the economy while the blockade persists would lead to catastrophic consequences, including a \"worst-case scenario\" where the country believes it can circumvent the blockade and try to maintain normal operations. He pointed out that Iran's long history under Western sanctions has resulted in a weak economy and widespread corruption. The U.S. blockade also poses significant short-term costs; for instance, shipping a single container between Iran and China by ship costs roughly $3,000, whereas bypassing the blockade by land transportation would increase the cost to $12,000. With 2 million containers traversing Iran's southern ports annually, Hariri estimated that the additional transportation costs would amount to approximately $18 billion each year. While relying on land routes may provide a temporary lifeline, Hariri predicts that the economy will eventually come to a standstill. Nevertheless, Hariri also hinted at Iran's willingness to retaliate against continued U.S. pressure, rather than simply observing the economy unravel. Meanwhile, Iran's deputy foreign minister has expressed growing unease that the recent reimposition of the U.S. naval blockade is pushing the country's economy towards collapse. Sources cited by the Wall Street Journal say that Iran's economy desperately needs sanctions relief, a potential outcome of a deal with the U.S. Earlier reports suggest that Iran's president and central bank chief have communicated the dire economic situation to Supreme Leader Ayatollah Mojtaba Khamenei. High inflation, a plummeting currency, and widespread protests triggered a brutal crackdown in January, and some officials in Tehran fear that the current economic turmoil could ignite more unrest. Experts warn, however, that Iran's repressive regime is unlikely to be swayed by the plight of ordinary citizens and is prepared to endure economic hardship longer than the U.S. public can tolerate high gas prices. Despite this, Trump is banking on the blockade to achieve what military bombing failed to accomplish: compelling Iran to reopen the Strait of Hormuz. At the same time, some crude oil is still managing to slip through the cracks, contradicting Iran's assertions that it has blockaded the strait while simultaneously denying Tehran crucial oil revenue. As oil prices have declined from last month's peaks, the oil market relief provides Trump with additional time to observe the effects of his blockade. Further pressure is also on the horizon, with Treasury Secretary Scott Bessent informing Newsmax that the U.S. is planning an economic isolation strategy unlike anything the world has ever seen, in conjunction with maintaining the blockade of Iran's strait.",
  "summary": "The head of the Iran-China Joint Chamber of Commerce said \"the consequences of the blockade far outweigh those of a direct war.\"",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}