Trump may hope an 'economic onslaught' will pressure Iran - its leaders are betting otherwise
The US has announced a new wave of sanctions targeting Iran's financial, digital, and shipping sectors to pressure the regime. Iranian officials have dismissed the measures as ineffective, citing their long-standing experience in bypassing international restrictions.
Why it matters
The effectiveness of these sanctions could determine the future of Iran's economy and its willingness to engage in diplomatic negotiations regarding its nuclear and regional activities.
Image source, EPA Image caption, Iranians have been feeling the impact of the war day in, day out
The US says it has launched an "economic onslaught against Iran's financial connections around the globe". Treasury Secretary Scott Bessent said sanctions included digital assets, technology, gold, aviation and shipping. Any nation financially partnering with Iran would be isolated.
However, Bessent's announcement of what he termed an "economic D-Day" may have sounded more dramatic in Washington than in Tehran.
Shortly after the announcement, Iran's Economy Minister Ali Madanizadeh called it "the same old talk" and said Iran was ready for "every scenario". He said Tehran had expected the measures and had plans to deal with them.
His reaction points to the main question Iranian leaders are likely to be asking: What can the US do now that it has not already tried?
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