Trump turns to economic pressure on Iran amid Strait crisis
The rial fell to 1.84 million per U.S. dollar, but Iran is still holding on through covert oil exports to China.
U.S. President Donald Trump said his administration is now again pressing Iran through economic means, not military strikes, amid the Strait of Hormuz crisis. In an interview with Axios, Trump said Washington is taking a more cautious approach after pulling back a threat of a major strike because there had been a breakthrough in talks. The pressure comes as Iran has set new conditions for lifting the blockade in the Strait of Hormuz, a route used for about one-fifth of global commercial oil shipments. At home, Iran’s economy has been hit by sanctions, attacks on infrastructure, a maritime blockade and mismanagement. The rial fell to 1.84 million per U.S. dollar in the open market. Even so, Tehran is still holding up through domestic diversification, shadow banking networks and covert oil exports to China, which is said to absorb 80-90 percent of Iran’s oil shipments.