US Naval Blockade and Sanctions Sever Iran's Global Trade

The United States has intensified its campaign of economic asphyxiation against Iran, combining a strict naval blockade with a sweeping sanctions package titled Operation Economic Outcast. Masoud Pezeshkian, President of Iran, admitted that these measures have severely damaged the national economy, causing exports and imports to fall by 25% to 35%. To mitigate the crisis, Pezeshkian proposed increasing domestic petrol prices, while Supreme Leader Mojtaba Khamenei urged the government to address inflation and phase out the US dollar in favor of a Resistance Economy.

On the maritime front, United States Central Command reported that its forces have seized full control of the Strait of Hormuz and halted Iranian oil exports. As of August 28, US forces redirected 82 commercial vessels, disabled three, and boarded two to enforce the blockade. In response, Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned that if Iranian security is not ensured, no infrastructure will be safe, asserting that oil exports from the Persian Gulf will be permitted for all countries or none.

Despite the blockade, the Ministry of Petroleum of Iran claims the state remains financially resilient, reporting the transfer of $7.5 billion in oil revenues to the central bank to cover expenditures through early 2027. Meanwhile, the US Treasury Department has targeted third-party facilitators, including Egypt's Banque Misr, for allegedly processing billions for Iranian shadow banking. The Government of Iran has condemned these actions as economic terrorism and a crime against humanity.