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Iran can be counting on the Strait of Hormuz as leverage. The American Navy continues to blockade the strait, with just a few ships getting via.
Iran’s Supreme Chief Mojtaba Khamenei and US President Donald Trump (R). (Pictures: Reuters/X)
Unable to interrupt Tehran with navy strikes, the US is now threatening Tehran with what Treasury Secretary Scott Bessent has referred to as “by no means earlier than seen” financial measures, as President Donald Trump seems to extend strain on the nation to give up. However Iran, after many years of sanctions, is betting it will probably face up to even more durable measures.
The USA has imposed sanctions on Iran for many years, with solely a quick easing after the 2015 nuclear deal. Trump deserted that settlement in 2018 and later promised a coverage of “most strain”.
Iran Has Learnt To Dwell With Sanctions
Specialists, as quoted by New York Occasions, say Iran’s financial system is in deep trouble however has not collapsed.
Danny Citrinowicz, an Israeli professional on Iran, mentioned Tehran was extra prone to escalate earlier than giving in. Iran has additionally developed methods to deal with financial restrictions, together with smuggling networks and new markets, significantly for oil, said the NYT report.
The US and worldwide sanctions helped push Iran in direction of the 2015 nuclear settlement. Below that deal, then Supreme Chief Ayatollah Ali Khamenei authorised talks to limit Iran’s nuclear programme in return for frozen belongings and sanctions aid.
Since Trump withdrew from the settlement, Iran has tailored to extended financial strain, added the NYT report.
Oil Retains Iran Going
Iran has expanded its financial ties with Russia and China whereas promoting most of its oil at a reduction to China. It additionally makes use of small Chinese language refineries, generally known as “teapots”, that are much less uncovered to US sanctions.
Tehran has developed a “shadow fleet” to maneuver oil, transferring it between ships and disguising its origin. It has additionally diminished imports and use of the greenback, counting on international banks and barter preparations.
For the reason that conflict and the US blockade, Iran has saved oil onshore and in older tankers. Some oil has additionally been moved by street and rail, whereas manufacturing at some wells has been diminished.
When the US blockade was briefly lifted after the June memorandum of understanding, Iran exported one other 80 million barrels, in response to Brett Erickson of Obsidian Danger Advisors.
Earlier than the conflict, Iran exported about 1.8 million barrels of oil a day. Regardless of the battle, increased oil costs imply Iran is forward of its budgeted oil gross sales for the 12 months, Erickson mentioned.
Financial system Hurting, However Regime Holds Agency
Iran’s financial system has suffered, with industrial exercise contracting for the primary time in eight years because the conflict started in February, in response to Esfandyar Batmanghelidj of the Bourse & Bazaar Basis.
Inflation and weak spot within the job market are anticipated to create additional issues. However Batmanghelidj mentioned this may not essentially result in a special political end result.
Iranian Overseas Ministry spokesman Esmail Baghaei mentioned new US measures would have “no impact on Iran’s place”.
Suzanne Maloney of the Brookings Establishment mentioned the success of financial strain would depend upon whether or not US resilience was higher than that of Iran’s regime.
Hormuz Turns into Key Leverage
Iran can be counting on the Strait of Hormuz as leverage. The American Navy continues to blockade the strait, with just a few ships getting via. Site visitors has fallen by greater than 90 per cent from earlier than the conflict.
Tehran is betting that the disruption will enhance financial strain on US allies and drive Trump again to negotiations.
Tens of millions of barrels of oil are lacking from international markets, whereas strategic stockpiles in Europe and the US have been badly diminished. Qatar, Bahrain, Iraq and Kuwait have additionally been badly affected.
Saudi Arabia, Qatar and Oman have argued in opposition to additional navy escalation as a result of Iran may goal their power infrastructure.
No Simple Deal In Sight
Trump says the conflict is critical to forestall Iran from growing a nuclear weapon. However after the 2015 deal was deserted, Iran elevated enrichment and moved nearer to turning into a nuclear-capable navy energy whereas persevering with to disclaim that it sought a bomb, stories NYT.
Vali Nasr of Johns Hopkins College mentioned belief in Trump is minimal in Iran and the 2015 deal has little credibility there. Trump is providing Iran little in return for reopening the Strait of Hormuz, with no US dedication to unfreeze belongings or raise sanctions.
“There isn’t any cheap deal for Iran on the desk,” Nasr mentioned, the NYT reported.
For now, Iran seems prepared to soak up additional financial ache slightly than give up its leverage, leaving the confrontation as a battle of financial wills.
Key Questions Answered
Ask News18Regardless of new financial measures and navy strain, Iran has proven resilience and has not been pressured into concessions or negotiations with the US. Iran’s Overseas Ministry spokesperson said that new US measures would don’t have any impact on Iran’s place.
Ask News18In regards to the Creator
Shuddhanta Patra is an Indian journalist with about 9 years of expertise in masking nationwide politics, geopolitics, defence, diplomacy and worldwide affairs. Her reporting focuses on South As…Learn Extra
United States of America (USA)
August 19, 2026, 20:00 IST
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