Washington imposes a blockade on ships coming to or leaving Iranian ports.
By opting for the economic stranglehold of Iran following the bombings, the American administration seeks to bend the regime that has been weakened. The damages caused by American and Israeli airstrikes will take years to repair and put pressure on Tehran to seek financial aid to compensate for the losses.
Will Iran and the U.S. find common ground at the diplomatic level? Washington and Tehran are far from it, but the Americans have announced talks about holding a second negotiation session with Tehran. “We are optimistic about the prospect of an agreement,” said White House spokesperson Karoline Leavitt on Wednesday.
Pakistan continues its mediation efforts after a first round of talks in Islamabad that concluded without an agreement. Pakistani army chief Asim Munir met with Iranian Foreign Minister Abbas Araghchi in Iran on Wednesday.
Iranians seem more willing than before to find a way out. Are they doing so under pressure? Their economy is severely impacted by the war. Several economic and social issues existed before the recent conflict, but some of them are worsening. The situation is not expected to improve. Washington has imposed a blockade on ships from or heading to Iranian ports since Monday, while Tehran still controls the Strait of Hormuz. According to Washington, “90%” of the Iranian economy depends on maritime trade. Americans have warned on Thursday, April 16, that they will maintain their blockade of Iranian ports “for as long as necessary,” said U.S. Defense Minister Pete Hegseth.
Donald Trump “hits where it hurts”
“The blockade of Iranian ports by the United States is another thorn in the side of the Iranian economy, posing currency entry concerns. Donald Trump hits where it hurts,” said Sylvain Bersinger, an economist and founder of the Bersingeco consulting firm to TF1info.
The American blockade of Iranian ports will impact the country’s budget. It will cost Iran approximately $435 million a day, with $276 million in export losses, primarily of crude oil and petrochemical products, according to an estimate by Miad Maleki, an analyst at the Foundation for Defense of Democracies, as reported by the Wall Street Journal.
Petrochemicals, metallurgy… deliberately targeted key sectors
Before the fragile ceasefire announced on the night of April 7-8, the conflict damaged over 125,000 residential and civil buildings, according to initial Iranian estimates. American and Israeli airstrikes also affected or destroyed nearly 20,000 industrial units. The most affected sectors by the airstrikes are metallurgy, petrochemicals, and pharmaceuticals – all key sectors of the economy focused on foreign exchange generation.
Petrochemicals account for nearly half of Iran’s non-oil exports, with estimated revenues of $18 billion by 2023. Steel, on the other hand, generates up to $7 billion annually, as per the Wall Street Journal. The U.S. and Israel have concentrated their attacks on the heart of the Iranian economy with a clear intent to bring the country to its knees and attempt to bend the regime.
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