United States President Donald Trump stated on Monday that “Iran is completely collapsing,” shortly before Washington announced a new harsh package of economic sanctions against the Iranian regime.
The American leader published the statement on his social network Truth Social amid increasing pressure on the Islamic Republic to stop the war, which is approaching the six‑month mark, and to restore shipping through the Strait of Hormuz. According to the U.S. Department of the Treasury, the package of measures, dubbed “economic D‑Day,” is to be officially introduced on Monday.
Treasury Secretary Scott Bessent said the measures will gradually begin to take effect from the first hours of the working day in Washington.
Iranian currency fell to historic low
The Iranian currency on Monday reached a historic low as Washington prepared to announce new sanctions that would increase pressure on an economy already suffering from previous restrictions and the American naval blockade. At the opening of currency markets, the rial fell to 2.02 million rials per U.S. dollar. The official exchange rate of the Central Bank of Iran was about 1.5 million rials per dollar, but most Iranians use the market rate.
The rial was already under pressure before the United States and Israel attacked Iran on February 28, when the country faced ambiguous inflation and economic contraction. Since then, the rial has repeatedly set new historic lows as nearly six months of war have further deteriorated the economic situation.
For Iranians, everyday consumer goods are becoming increasingly less accessible. Since the start of the war, the price of rice has risen by 60 % and beef by more than 150 %. The International Monetary Fund forecasts a GDP contraction of more than 5 %.
Iran’s strategic advantage and pressure on Trump
However, the economic pressure has not yet translated into political pressure. Iran maintains a key strategic advantage: its attacks on ships and threats to them in the Strait of Hormuz have almost completely paralyzed shipping through this vital sea artery.
This harms the global economy and puts significant pressure on U.S. President Donald Trump ahead of the midterm elections.
As a result, the war has turned into a struggle for control over the strait, through which one‑fifth of the world’s oil trade passed before the conflict. Iran now refuses to fully restore shipping through the strait unless it can charge fees from vessels.
Source: Clarín
