U.S. Blockade on Iran Could Last Indefinitely, Economy Near Collapse
On Thursday, Army Secretary Pete Hegseth stated that the U.S. could maintain a blockade of Iran “indefinitely.” However, economists indicate that Iran’s economy is under significant strain and nearing a state of “severe collapse.”
“The U.S. Navy is well-positioned to sustain these blockades for the long haul, as we continually rotate ships in and out, just as we have done in the past,” Hegseth mentioned during a news briefing.
Reportedly, the aircraft carrier USS George Washington is navigating from Vietnam toward the Middle East, currently passing through the Straits of Malacca, according to sources.
The USS George Washington is set to replace the USS Abraham Lincoln, which has been deployed for over 240 days. Hegseth noted that the Lincoln has faced personnel and mechanical challenges due to its lengthy mission, although these reports of dire conditions were claimed to be “completely misrepresented.”
“We’re committed to ensuring that every ship and crew is well-equipped at all times. While some deployments may be longer than others, I have immense respect for our sailors. Their work on the open seas under challenging circumstances, often with limited port access, is remarkable,” he expressed.
In a post on Truth Social, former President Trump asserted that the U.S. maintains “complete control over the Strait of Hormuz,” predicting that it would continue to do so.
Trump elaborated, stating, “Everyone refers to our naval blockade as a ‘wall of steel,’ and Iran is powerless to combat that. Their navy and air force are effectively nonexistent, their soldiers are unpaid, and their leadership appears confused at best. Economically, they are struggling, as their nation faces severe hardships.”
Radio Free Europe reported that many Iranians are feeling the brunt of soaring prices and persistent shortages in Tehran, which have made everyday life increasingly difficult. One woman voiced her concerns about the dwindling availability of food, stating, “At this point, we’re only buying essentials, and even those are hard to afford.”
Another individual echoed the sentiment, sharing that staple items like bread, eggs, and potatoes are rising in cost weekly, with fruit prices becoming unaffordable.
Masoumeh Taherhani, an economic analyst based in London, highlighted that Iran’s economy was in crisis before the current war, but is now “heading toward severe stagflation and potential hyperinflation.” She anticipates that within a year, Iran’s economy could be on the verge of serious collapse.
Another analyst from Forbes stated that the U.S. economy is likely to remain relatively stable despite various scenarios in the conflict, even if Iran attempts to exert control over the Strait of Hormuz. This stability, they noted, is partly due to efforts by other Middle Eastern oil producers to find alternative transport routes.
They mentioned that potential tolls from the Strait of Hormuz would not significantly elevate global oil prices, which is critical for economic forecasts. Though there may be a reduction in profits for non-Iranian oil producers, it shouldn’t substantially affect prices globally.
Concerns extend beyond Iran, as other economies, like the UK, may also feel the impact of the ongoing crisis. The National Council of Iranian Resistance (NCRI) indicated that the Iranian government has struggled to manage the “crisis of political and economic paralysis,” exemplified by a recent collapse of price controls.
Additionally, sources reveal that Iran is grappling with a fuel crisis, facing challenges not only in exporting oil but also in importing refined fuel. Current daily demand exceeds production, leading to tight fuel rations and escalating public discontent.
As analysts predict a “historic macroeconomic collapse” for Iran, public protests are resurfacing against the regime amid exceptionally high inflation rates. The NCRI asserts that various factors, including foreign blockades and industrial decline, are limiting the government’s options in addressing the ongoing turmoil.
