US sanctions and a naval blockade have left Iran “completely bankrupt,” media reports said, citing a White House official, as President Donald Trump continues to use economic pressure to push Tehran while
keeping other options on the table.
Al Jazeera reported the development on Thursday, citing the reports and quoting the White House official as saying Trump still has several tools available to pressure Iran in the coming months.
The remarks come as Washington and Tehran remain locked in a standoff over efforts to end the conflict and reopen the Strait of Hormuz. Reuters reported on Wednesday that there had been no progress in efforts to revive an interim peace agreement reached in June, with both sides accusing the other of failing to honour its commitments.
‘WALL OF STEEL’
Meanwhile, Trump has again claimed that the US has “total control” over the Strait of Hormuz, even as shipping through the vital waterway remains at a fraction of pre-war levels. The US President said on Truth Social that the US would “keep” control of the strait, calling the naval blockade a “WALL OF STEEL”.
Only eight ships passed through the Strait of Hormuz on Tuesday, Reuters reported, a sharp drop from the 130-140 vessels that crossed the waterway daily before the war. Traffic was also below the recent average of around 12 ships a day.
The disruption has intensified concerns over global energy supplies. The International Energy Agency on Wednesday warned that global oil supply could decline by 4.3 million barrels per day this year, or about 4%, due to the closure of the Strait of Hormuz, the US blockade of Iranian oil exports and attacks disrupting other major shipping routes.
Strait Of Hormuz
The Strait of Hormuz remains at the centre of the confrontation. The strategically important waterway handled about a fifth of global oil and liquefied natural gas flows before the conflict, and its continued disruption has kept pressure on global energy markets.
Reuters reported that the strait remained effectively blocked as of Wednesday, while Tehran said it would not reopen the waterway until its conditions were met.
Efforts to settle have also run into fresh obstacles. Trump recently demanded that Iran pay compensation for deaths and damage linked to the conflict, while Tehran has called for an end to US sanctions and the naval blockade as part of conditions for reopening the waterway. Reuters reported that the new US demand could further complicate negotiations.
