Iran defies Trump's "economic D-day" and will maintain the blockade of the Strait of Hormuz

Iran has rejected President Donald Trump’s announced economic pressure campaign against the country, known as “Day D,” and confirmed it will maintain its blockade of the Strait of Hormuz. The Islamic Republic reiterated its stance that it will not change its position in the ongoing conflict nor reopen the strategic waterway, despite worsening financial conditions marked by soaring inflation and rising unemployment. The U.S. government has imposed sanctions on Iran for years, restricting its ability to trade with other nations and particularly hindering international sales of Iranian oil, which remains its primary asset. During the war, Washington has further restricted maritime traffic through the Strait of Hormuz, blocking Iranian vessels and ports. Now, after failing to coerce Tehran through military means, Trump has launched what he calls the “most devastating economic operation ever directed against a nation.” This move aims to end the six-month-long conflict and secure the reopening of the strait. Tehran has responded with defiance. Foreign Minister Abbas Araghchi dismissed the threat as familiar, stating, “We have seen this movie before. The same story. Different bullies.” He noted that Washington has repeatedly applied economic sanctions over the past years without achieving its goals. A spokesperson for Iran’s Ministry of Foreign Affairs, Ismail Bagaei, added that these measures would not alter Iran’s position in the war. Despite the official resolve, Iran faces severe economic challenges. Inflation reached 87.9% year-on-year in July, with food and beverage prices climbing to 128%. Unemployment has risen from 7.3% to 9.1% over the last year, with approximately 450,000 jobs lost, according to official data. Analysts estimate that up to two million positions have been lost during the war. These figures reflect growing public discontent, as citizens struggle to afford basic necessities. Nahid, a 64-year-old resident of Tehran, told EFE that her family is increasingly unable to afford meat, relying instead on cheaper chicken. Fatima, a 39-year-old mother, described how she can no longer provide adequate meals for her children, noting that fruits and meat have become scarce. Both women expressed concern over the deteriorating quality of life, emphasizing that ordinary families bear the brunt of the war’s economic toll. The situation could worsen with new U.S. sanctions, though their specifics remain undisclosed. Treasury Secretary Scott Bessent warned countries providing essential support to Iran would face economic consequences. China, which purchases around 90% of Iran’s oil at discounted rates, remains a key ally, though it is unclear whether it will comply with U.S. demands. The United Arab Emirates, another crucial economic partner, recently suspended all commercial, trade, and financial relations with Iran. Before the war, Dubai accounted for nearly 30% of Iran’s imports, valued at $21 billion in 2024, according to the World Trade Organization. Analysts suggest that while Iran’s economy is under strain, it is unlikely to yield to U.S. pressure. “If the goal is to cause Iran’s collapse or force its leaders to surrender and make strategic concessions, this campaign is unlikely to achieve its objectives,” one expert stated. Despite the hardship faced by the population, the resilience of Iran’s leadership and its continued resistance to external pressures indicate that the current economic strategy may not succeed in altering the course of the conflict.