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Iran prepares to keep economy alive as US threatens further sanctions

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Iran prepares to keep economy alive as US threatens further sanctions
Image · Al Jazeera

What the report says

Al Jazeera reports that Iran is bracing for a new round of US economic pressure as Washington signals additional sanctions and broader measures aimed at worsening Tehran’s financial strain. Treasury Secretary Scott Bessent said the US planned to intensify economic damage on Iran, while President Donald Trump repeated that message and pressed Tehran to surrender. The article says the latest threats come after months of embargoes, asset freezes, attacks on ships and a naval blockade tied to the war.

Iranian officials, meanwhile, say they are preparing to keep the economy functioning under harsher conditions and may move toward offensive operations if the conflict escalates further. The story says Tehran has also tied any reopening of the Strait of Hormuz to conditions it says were part of an expired memorandum of understanding, including an end to the blockade and the release of frozen assets. Talks through Oman and other mediators have stalled.

To reduce pressure, Iran has redirected more imports through land borders with Pakistan and Turkiye and via the Caspian Sea, while local authorities were given added powers to secure essential goods and stockpiles. The article says oil exports briefly resumed during a ceasefire period, but have since stopped again.

Analysts quoted by Al Jazeera said the combination of sanctions and military pressure could deepen shortages, inflation and supply disruptions, especially in energy and fuel. The piece also notes that Iran’s underlying economic weaknesses predate the current war, with decades of mismanagement and isolation compounding the impact on households and industry.

Read the full report at Al Jazeera →

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