Iran Criticizes US Sanctions, Citing Risk to Society and Economy
DUBAI: Iran has strongly denounced new economic sanctions from the United States, labeling them as “state terrorism.” Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, has also issued a directive prohibiting actions that could jeopardize “social cohesion,” as there are fears that increased financial strain could lead to unrest within the country.
As the conflict enters its sixth month with negotiations stalled, the Trump administration has intensified its efforts to weaken Iran’s economy, advertising this as an “economic D-Day.” The impact of the sanctions is evident, with inflation in Iran hitting a staggering 66 percent last month.
Tensions in the Strait of Hormuz remain a critical issue in the ongoing conflict. The US has warned nations to sever their business ties with Iran or risk facing secondary sanctions, although no direct penalties have been imposed yet.
The Iranian Foreign Ministry urged all countries to comply with international law, asserting that participating in US sanctions against Tehran is equivalent to enforcing one nation’s unlawful desires on others. The Ministry described the recent US measures as a “crime against humanity,” drastically affecting the health and livelihoods of millions and called on other nations and the United Nations to uphold international law.
In a written statement, Supreme Leader Khamenei emphasized the need for government officials to refrain from any actions or words that could undermine national unity. He encouraged the authorities to focus on addressing pressing economic issues, including inflation and unemployment.
Meanwhile, a US official informed Reuters that the Trump administration intends to impose restrictions on Egypt’s Banque Misr for its dealings with Tehran, aiming to limit the bank’s ability to conduct transactions via US financial systems. In a separate move, the Treasury Department has also sanctioned one entity in Hong Kong and an individual connected to Iran’s Bank Melli.
While the US concentrates on its strategic economic measures, other nations are attempting to foster diplomatic solutions to end the conflict. During discussions in Tehran, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani stressed the importance of restoring open shipping through the Strait of Hormuz, a vital passage that accounts for 20 percent of the world’s oil supply.
Iran’s Foreign Minister, Abbas Araqchi, described the discussions with Al Thani as “creative” and appealed to the US to cease its military and economic pressure on Iran, advocating for a return to negotiations. “Reviving diplomacy is doable if the US acknowledges that pressure is not effective,” Araqchi stated.
Despite having brokered a ceasefire agreement in June, tensions escalated again due to disagreements regarding the Strait of Hormuz, particularly after the US and Israel initiated military actions in late February. Iran had previously warned that it would target any vessels traversing the strait without its consent, resulting in a reduction of maritime traffic and a spike in oil prices.
American military leaders claim to have cleared mines from the strait that had been laid by Iran’s forces. Although the US maintains that the strait remains a free international waterway, many shipping vessels have chosen to avoid it due to Iranian threats. Tracking services indicate that maritime activity in the area has plummeted to between 5 percent and 15 percent of normal levels.
Recent shipping data revealed that only seven commercial vessels passed through the Strait of Hormuz on Thursday, a sharp decline from 17 the day before, and below the ten-day average of 15.
Despite these challenges, oil prices fell on Friday and are expected to decrease for the week, as analysts suggest that oil flow through the strait is gradually resuming and that producers are adapting to the evolving conditions in the Gulf region.
