Conflict appears deadlocked — Iran responds to US threats with threats of its own
There is still no agreement in the Iran conflict. The US is threatening an "economic war," and Tehran is responding sharply. Anyone who participates will be seen as an "enemy." But Iran's economic problems appear to be growing.
Iran's leadership has responded to the United States' announcement of new sanctions against the Islamic Republic with threats of its own. The Secretary of Iran's National Security Council, Mohsen Rezaei, warned countries "around the world," and the Gulf states in particular, against joining the "economic war" announced by President Donald Trump against his country. They would then be regarded by Iran as an "enemy."
If Trump presses ahead with his plans, Iran will strike back with "devastating force," Rezaei said in an interview with state broadcaster IRIB. Iran would also target oil transport routes from the Persian Gulf that do not pass through the Strait of Hormuz, should neighboring Gulf countries join the United States' initiative.
US Treasury Secretary to announce sanctions
The US president had most recently threatened Iran with an "economic war and isolation on an unprecedented scale," referring to an "economic D-Day." However, he had initially not specified any concrete measures. Treasury Secretary Scott Bessent is set to address the matter on Monday.
Countries that support Iran or do business with it would also be hit with "enormous" punitive measures, Trump said. The US government called on its allies as well as China to support this "economic war." The government in Beijing, however, promptly rejected this. China has also continued to be Iran's most important buyer of oil since the start of the conflict.
Iran's foreign minister speaks of US "desperation"
Iran's Foreign Minister Abbas Araghchi dismissed the threat of new US sanctions as a sign of desperation. Washington must speak to Iran respectfully in order to find a solution, he said in a video published on Telegram. "All their actions — whether blockades or other military steps — have failed, and this new thing of theirs will also fail."
Iranian President Masoud Pezeshkian expressed himself in more moderate terms given the deadlocked situation. Based on the framework agreement between the US and Iran, whose 60-day deadline had expired last week, a solution must be found to overcome the "stalemate," he said.
"There is not a single provision in this agreement that would amount to capitulation," Pezeshkian said in a speech quoted by the state news agency IRNA. He was aware, however, "that our society is currently grappling with many difficulties."
Pezeshkian: We cannot attract investment
He also drew a connection between the agreement and Iran's economic prospects, stating that the country could not attract investment during this deadlocked phase. "Capital and money are extremely sensitive to risk," he said. "We must eliminate this risk from the country."
Peseschkian had just days ago advocated for an early end to the war, arguing that Iran was in a better position than the United States: "It is better to end it today, as we are in a position of strength and dignity," Peseschkian had said about the war. The United States had become hated throughout the world because of the war, said the Iranian president, who also serves as head of government.
Iran's economic situation deteriorating further
Last December, protests had broken out in Iran against the high cost of living, which quickly expanded into nationwide demonstrations against the leadership in Tehran. The regime violently suppressed the protests, with thousands killed in the process.
Since the war began at the end of February, the economic situation of the population has continued to deteriorate massively. "We are doing our utmost to overcome inflation, the problems with the cost of living and unemployment, and to offer the people a better future so that they can live in dignity and pride," Peseschkian said in his speech.
