Total US Economic Pressure Hits Iran, Can Tehran Withstand It?

The United States is increasing pressure on Iran by shifting its focus from military operations to a full-scale economic strategy. Washington is even threatening countries that still provide support to Tehran with severe sanctions.

US President Donald Trump has called the policy an ‘Economic D-Day’ and urged Washington’s allies to join in isolating Iran economically.

US Treasury Secretary Scott Bessent said the maximum economic pressure campaign is expected to reduce the likelihood of Washington again launching large-scale military operations against Iran.

However, the increasingly heavy economic pressure has not yet made the Iranian government show signs of surrender. A number of Tehran officials have repeatedly stressed that Iran will continue to resist, including against countries that join in applying pressure on them.

Iran’s security chief, Mohsen Rezaei, warned Washington that Tehran would respond harshly if the economic pressure continues. He described Iran’s possible retaliation as something that would occur like an earthquake.

Rezaei also warned countries around the Gulf not to join the United States sanctions campaign.

‘If the countries around Iran join America in their economic war, not a single drop of oil will leave the Persian Gulf and the Strait of Hormuz,’ Rezaei said, adding that Iran could also target other oil export routes in the Gulf region.

The threat came as trade traffic through the Strait of Hormuz was still experiencing serious disruption throughout the weekend. The situation has further increased pressure on global energy markets.

The Strait of Hormuz is one of the world’s most important energy trade routes. Prolonged disruption in the area could affect oil distribution and heighten concerns over international energy supplies.

Iranian Foreign Minister Abbas Araghchi called Washington’s new sanctions policy a sign of American desperation.

According to Araghchi, the economic pressure will not be able to force Tehran to surrender. He assessed that Washington is merely replacing the military approach with what he called the same old plan.

That view was also expressed by Reza Nasri, an international lawyer with ties to Iran’s Foreign Ministry.

He assessed that Washington’s policy is not merely an action against Iran, but an effort to expand US authority over other countries.

‘This is a claim of jurisdiction over the world, and every sovereign state on earth is the real recipient. Iran is merely the trigger. The demand that no country allow its own banks, businesses, airports or ship registries to engage in lawful trade with another country is addressed to everyone. Sovereignty itself is the target,’ Reza said.

Iranian Foreign Ministry spokesman Esmail Baghaei also stressed that the latest US sanctions will ultimately fail again to achieve Washington’s goals.

‘Repeating methods that have previously proven to fail will not produce a different result, except to show the extent of America’s hostility and vindictiveness towards every Iranian citizen, because they know full well that the impact of these sanctions will affect ordinary Iranian citizens,’ Esmail said.

‘Forcing or intimidating other countries to stop or restrict their trade relations with another country means violating the most important foundation of international relations and the most fundamental pillar of the United Nations Charter, namely respect for the national sovereignty of states,’ he added.

Professor of West Asian studies at the University of Tehran Hassan Ahmadian said Washington’s latest move is actually not something entirely new for Iran.

‘Everything in Iran has been under primary and secondary sanctions since 2018. Because these sanctions failed to achieve the goals desired by the US and Israel, both sides turned to military action,’ Hassan said.

Iran has faced United States economic sanctions for decades. The pressure has become heavier because it is accompanied by conflict and military strikes.

The impact is felt directly on the economy and people’s lives. Inflation has risen, while millions of jobs are said to have been lost or halted due to prolonged economic pressure.

Prices of various necessities have also risen significantly. Food, medicines, vehicles, electrical equipment and petrochemical products have reportedly seen price surges compared with the previous week.

The situation has been further exacerbated by a combination of domestic problems, attacks on infrastructure, US sanctions, a naval blockade, and an almost total internet blackout that has lasted for about six months.

Iran’s currency, the rial, is also under severe pressure. Its value on the open market has fallen to an all-time low, reaching around 1.84 million rials to the US dollar. The weakening has further eroded people’s purchasing power.

Although economic pressure is mounting, the conditions do not yet prove that the Iranian government will soon collapse. Iran’s rulers still appear to be showing solidarity in the face of external pressure.

Tehran is relying on a number of strategies to sustain its economic activity, from increasing domestic production and covert oil exports to China to the use of shadow banking networks.

Shadow banking is a parallel and unofficial financial system used by Iran to move funds, conduct oil transactions and obtain foreign currency with the aim of evading international sanctions.