Operation Economic Fury

5

Iran is on brink of economic collapse.

With the Strait of Hormuz squeezed and sanctions pushed into overdrive, Iran’s economy is being driven toward the brink: inflation moving towards 180%, millions face unemployment, and core industries are seizing up under supply shortages. Even regime insiders are reportedly urging emergency measures and quietly exploring a deal with Washington just to keep the system from imploding. Meanwhile, the U.S. is tightening the noose globally—warning banks from the Gulf to China that any dealings with Iranian funds will trigger swift, punishing isolation from the U.S. financial system. Oil revenues are being choked off, shadow networks targeted, and every remaining financial artery constricted. This isn’t pressure—it’s a calculated economic siege, leaving a cash-starved regime boxed in, internally strained, and increasingly unstable.

The military action has—absolutely—had a large economic impact on Iran. But the economic stranglehold that the U.S. has on the Islamist regime should not be overlooked. Iran International: According to the assessment presented to the president, inflation could reach as high as 180% if shortages of industrial inputs persist. The same projections estimate that unemployment could rise by around two million people as factories, service providers and small businesses struggle to resume operations. According to sources familiar with the discussions, central bank governor Abdolnaser Hemmati has been urging Pezeshkian to take urgent steps to stabilize the economy, including restoring full internet access and pursuing an agreement with the United States…. Some officials fear that if the economic crisis worsens or the state faces financial collapse, powerful figures within the Islamic Revolutionary Guard Corps could seek to shift blame onto the president, they said (Iran International).

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The blockade of the Strait of Hormuz, coupled with a doubling down of economic sanctions has left the terror-supporting regime in an unsustainable position.

Rich Goldberg of the Foundation for Defense of Democracies. Goldberg: It would appear what the administration is doing right now combined with the blockade on the naval waters is going from Operation Epic Fury to Operation Economic Fury…. A letter apparently was sent just today to the UAE, to Oman, to Hong Kong and to China and all their banks saying, “We know that there’s shadow banking. We know you may be holding onto or processing some sort of Iranian funds. We are watching. We are now on warning. We are going to use the full maximum pressure of our sanctions and cut you off from the United States the minute we have evidence that you are handling their funds. Stop it right now, freeze them in place.” We’ll see if that has a big impact. That was a big warning letter just sent out in the last few hours (source).

From our Treasury Department: Treasury is moving aggressively with Economic Fury, maintaining maximum pressure on Iran. Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities and is prepared to deploy secondary sanctions against foreign financial institutions that continue to support Iran’s activities. The short-term authorization permitting the sale of Iranian oil already stranded at sea is set to expire in a few days and will not be renewed (Bessent).

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