Trump on Iran’s Economic Struggles

President Donald Trump stated on Tuesday that Iran is “doing very poorly” and implied that the regime might eventually concede, as the country’s currency continues to drop to record lows due to increasing U.S. economic sanctions aimed at isolating Tehran and disrupting its oil revenue.

When asked if Iran was close to capitulating, Trump remarked, “They’re doing very poorly. I don’t know if they’re going to give up yet, but they will give up.”

Meanwhile, Trump suggested the ongoing conflict with Iran would conclude “very, very soon” and confirmed that stopping Tehran from acquiring nuclear weapons is a primary goal for the U.S.

The President’s comments coincided with a significant decline in Iran’s economy as the rial plummeted past 2.5 million to the U.S. dollar, marking yet another record low just a day after it had fallen to about 2.4 million.

Treasury Secretary Scott Bessent pointed to the rial’s collapse as evidence that their “Operation Economic Outcast” is effectively intensifying financial pressure on Iran.

“Operation Economic Outcast has caused the rial to hit record lows,” Bessent asserted. “We will continue to degrade the Iranian regime’s ability to fund terrorism and develop a nuclear weapon.”

Prior to the conflict that began in February, the rial traded at about 1.7 million to the dollar. Since then, the currency’s value has sharply declined as the U.S. has implemented extensive financial sanctions and a blockade to hinder Iran’s oil exports.

Bessent noted that the blockade is rapidly using up Iran’s remaining crude oil supplies available outside the Strait, estimating that Tehran has approximately two weeks before its last shipments reach China.

“Then they have nothing left to trade for anything,” he remarked.

He also stated that while non-Iranian oil is moving out of the Gulf at prewar levels, Iran’s own exports have been reduced to zero due to the U.S. blockade.

“The score is United States, one billion — more than one billion barrels have gotten out — and Iran, zero,” Bessent added.

His goal is to transform this economic isolation into lasting leverage for negotiations, aiming not just for an agreement but to ensure Iran follows through on it.

“My job is to make sure that when they come with a deal, they want to stick to it,” he explained. “They will stick to it because they are on their knees.”

The administration escalated these economic pressures on Tuesday by imposing sanctions on ten individuals and entities associated with procuring weapons for Iran’s defense sector.

Bessent emphasized that Treasury would keep targeting the networks that provide support for Iran’s actions, vowing to “identify, expose, and isolate Iran’s enablers.”

Trump also highlighted the disparity of oil movement in the Strait during his remarks, claiming that oil traffic has reached historic highs under U.S. protection, despite Iran’s exports being obstructed.

“We took more oil out of the Hormuz Strait over the last couple of days than at any point in history,” he noted.

In a later post on Truth Social, Trump discussed the loss of control Iran has over the Strait, sharing insights from Swiss energy analyst Alexander Stahel.

Stahel observed the development of a U.S.-protected “Hormuz Shuttle” which allows Gulf oil producers to transport oil through the critical waterway, despite Iranian threats. He concluded that Iran has “failed to shut the Strait” and that “time is increasingly working against Tehran.”

Iran has responded with threats to disrupt regional energy trade if it is unable to sell its oil.

“In a region where we cannot sell oil, no one else will sell oil either; or if our security is not guaranteed, no infrastructure will remain safe,” Iranian parliament speaker Mohammad Bagher Ghalibaf cautioned.

This threat arises as control of the Strait becomes a pivotal point in indirect negotiations facilitated by Qatar, with Iran seeking U.S. concessions to allow its reopening.

Iranian Foreign Minister Abbas Araghchi stated that they are awaiting a formal response from the U.S. regarding a proposal that insists on Iranian conditions for the Strait’s reopening.

“Our position is clear, and the only issue under discussion is the Strait of Hormuz,” he specified, while asserting that there has been no concession in Iran’s nuclear stance.

Trump has publicly dismissed the Iranian proposal, claiming they seek an agreement because they “are losing so badly,” although messages continue to be exchanged via Qatar.

On Monday, Trump denied any claims of offering sanctions relief to secure an agreement, stating, “I offered them NOTHING!”

Vice President JD Vance noted that the U.S. has not ruled out an agreement if Iran can prove it will uphold the terms.

“There is a universe where we can strike a deal with Iran, but that requires the Iranians to behave,” Vance remarked, adding that negotiations would revolve around actions rather than just words.

Secretary of State Marco Rubio elaborated that concerns over Iran gaining military leverage influenced the timing of the U.S. military action.

He explained that Iran had been building up weapons to create a defensive barrier that would limit adversaries’ abilities to strike, potentially allowing them to pursue a nuclear weapon behind that protection.

A nuclear-capable Iran, he warned, could threaten to dominate the Strait of Hormuz and jeopardize global energy security.

“They would be able to control the straits, charge a toll, and decide who got energy and who did not get energy on this planet,” Rubio concluded.

Trump made it clear that he believes the campaign against Iran is nearing its end, stating that the conflict would be resolved “very, very soon” and reaffirming that “Iran will not have a nuclear weapon.”

He also placed this confrontation within a historical context, suggesting it will be remembered as “one of the most important things that we did” in the coming years.