August 21, 24:57Al Bawaba

Washington declares economic war on Iran, aiming to undermine the regime

The United States is preparing a large-scale campaign of economic pressure against Iran. Treasury Secretary Scott Bessent stated that Washington intends to inflict an unprecedented level of coordinated economic isolation on Tehran.

According to Bessent, this approach is designed to exert maximum economic pressure on Iran with the goal of destabilizing the current administration and reducing the need for a large-scale military operation.

Treasury Secretary Janet Yellen expressed optimism about the success of Washington's economic campaign, calling the proposed sanctions likely the most extensive coordinated financial operation ever conducted against a government.

Washington's Warning to Iran's Trading Partners

The strategy may affect not only Iranian entities themselves. Bessent warned countries conducting commercial or financial business with Tehran about possible serious consequences if the sanctions regime expands.

Washington is expected to try to force its partners to choose between supporting the US-led economic isolation plan and continuing trade with Iran. China, in particular, may play a crucial role in this campaign due to its economic ties with Tehran. Bessent did not specify whether Beijing would face direct consequences but called on China to cooperate with Washington in developing the strategy.

Furthermore, the US believes that China and other major powers are interested in restoring shipping through the Strait of Hormuz. He added that upcoming actions could limit Iran's ability to support its regional allies and proxies.

Iran Accuses US of 'Economic Terrorism'

Tehran responded decisively: Iran's Foreign Ministry condemned Washington's latest economic and trade restrictions, labeling them 'economic terrorism.' Iran asserts that the sanctions ultimately punish ordinary citizens, not just the government, and accused Washington of employing practices it termed crimes against humanity.

The ministry stated that the latest sanctions campaign demonstrated the inability of the United States to achieve its goals through military coercion, emphasizing that Tehran will continue to defend its national interests in the face of economic, political, and military threats.

Threats of New Sanctions from Trump

These sharp statements followed President Donald Trump's announcement that Washington is preparing additional sanctions against Iran, increasing pressure on the country's already struggling economy. The US Treasury has not yet disclosed the precise details of these measures, creating uncertainty about which sectors, firms, financial networks, or countries might be affected.

Iranian Foreign Minister Abbas Araghchi sharply criticized Washington's policy, stating that a return to economic warfare would not lead to Tehran's submission. These steps indicate an escalation of economic confrontation between Washington and Tehran, while the Trump administration believes that unprecedented financial isolation can force Iran without provoking a new major military escalation.

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cgtn.comAugust 21, 05:22

Conflict with Iran shifts to economic confrontation, creating a complex situation for the US

Tensions between the United States and Iran have persisted in recent months. The US is not only continuing to exert significant pressure on Iran and striving to maintain a prolonged military confrontation with Tehran but is also gradually increasing economic sanctions and pressure, attempting to force Iran to make concessions.

Recent statements from the Trump administration indicate that the strategic confrontation between the US and Iran is becoming increasingly protracted. This ongoing competition will likely lead to deep changes in the geopolitical landscape of the Middle East.

Military measures are insufficient to coerce Iran

Although the US maintains a relatively covert approach toward Iran, the methods of pressuring Tehran are subtly changing. After nearly six months of intense conflict and confrontation, the United States has gradually realized that military means alone are insufficient to compel the Iranian government to change course or secure serious concessions from Iran on key issues such as the nuclear program and the Strait of Hormuz. It is becoming increasingly difficult for Washington to achieve its strategic goals solely through military means.

Furthermore, the US is unlikely to sustain the high costs associated with conducting military operations near Iran indefinitely. US carrier strike groups deployed near Iran have already undergone lengthy operational deployments, and stockpiles of American air defense missiles are significantly depleted, potentially limiting Washington's ability to wage high-intensity war for an extended period.

Meanwhile, Iran's attacks on US military bases in the Middle East, as well as the blockade of the Strait of Hormuz by Iran, have led to a rapid expansion and escalation of the regional conflict. These events have not only caused further disruptions to the global economy but have also affected the US economy itself. Against this backdrop, the US and its allies in the Middle East can no longer rely solely on military means to achieve their strategic objectives; they must seek new approaches and tools to maintain and increase pressure on Iran.

Economic pressure

The economic pressure exerted by the United States on Iran is implemented primarily in two ways. Firstly, Washington is expected to maintain a naval blockade and continue deploying carrier strike groups and naval forces around Iran, putting pressure on Iranian ports and maritime transport while simultaneously intensifying efforts to intercept vessels heading to or related to Iran. The goal is to maximally weaken Iran's foreign trade networks.

Secondly, the US is gradually introducing a new round of sanctions against Iran, expanding the scope of restrictions on Iranian individuals and institutions, and strengthening oversight of Iran's foreign trade and energy deals. These measures aim to maximally restrict Iran's external economic activity and maintain sustained economic pressure on Tehran.

Will the US achieve its goals?

However, there remains significant uncertainty about whether US economic pressure on Iran can fully realize its intended goals. On one hand, US sanctions and economic restrictions against Iran have been in place for decades. Specifically, after the unilateral withdrawal of the US from the nuclear deal with Iran in 2018, American economic sanctions caused serious economic and social difficulties in Iran and repeatedly contributed to the escalation of internal political and social tensions.

Nevertheless, amid ongoing US military strikes on Iran, domestic support for the Iranian government has increased to some extent. Moreover, the economic problems caused by long-term sanctions have not completely destroyed Iran's economic foundations or disrupted the basic functioning of Iranian society. Therefore, even if the United States increases economic pressure, it may be difficult in the short term to force Iran to make serious concessions. Iran retains a certain capacity to withstand and respond to external economic sanctions.

On the other hand, Iran is actively developing alternative trade routes. Specifically, following the start of the conflict at the end of February this year, Iran has been more actively using land transport networks through Iraq, Pakistan, Central Asian countries, and Russia, seeking to create more diversified channels for foreign trade. These trade networks have helped preserve Iran's economic ties with the outside world to some extent, making it difficult for the US to completely sever Iran's foreign trade and economic activity. In light of this, the attempt by Washington to completely isolate Iran from international trade through sanctions and economic restrictions is unlikely to be entirely successful.

The economic pressure of the United States on Iran reflects Washington's growing recognition that military means alone are insufficient to achieve strategic goals. Therefore, Washington is increasingly relying on economic tools in an attempt to reduce the likelihood of future direct military confrontation while maintaining comprehensive pressure on Iran and preserving the internal political stance of the US government. Nevertheless, neither military nor economic pressure is likely to force Iran into serious concessions in the near future. Continued US pressure on Iran is unlikely to fundamentally resolve regional security issues and will most likely keep the United States entangled in a protracted conflict with Iran, increasing the strategic and economic costs of its policy in the Middle East.