Iran's President Pezeshkian has conceded that sharply declining oil revenues and severe war damage to some industrial facilities are worsening the country's economic conditions, with import costs inflating and driving domestic prices sharply higher.
Following Washington's high-profile announcement of an "economic strangulation" campaign, the countermeasures Iran will adopt and whether the U.S. can persuade more allies to join the sanctions will directly determine the trajectory of the Gulf region in the coming period.
Meanwhile, the Trump administration faces midterm elections in November, and the nearly six-month-long conflict is pushing up U.S. fuel prices and borrowing costs, with 30-year Treasury yields climbing to their highest levels in nearly two decades. A Reuters poll published on the 18th shows Trump's approval rating at just 33%, the lowest of his tenure, with about 80% of Americans believing U.S. involvement in Iran will persist for a considerable time.
Where things stand
Iran's Foreign Ministry issued a statement on the 20th strongly condemning the new U.S. economic and trade sanctions, saying Tehran will use "all tools and capabilities" to safeguard national interests and the legitimate rights of the Iranian people. The statement said the sweeping U.S. sanctions violate the basic human rights of Iranian citizens, constituting "economic terrorism" and a "crime against humanity," while also breaching the principle of respect for national sovereignty and trampling fundamental norms of international law.
The statement noted the sanctions were imposed after the U.S. and Israel failed to achieve their objectives in the war against Iran, aiming to force the Iranian people into submission. Such measures cannot shake Iran's determination to defend its national independence, dignity, and sovereignty. Sanctions and economic pressure are described as "the other side of the coin of war and military aggression."
The statement added that imposing new sanctions continues a policy that has been "tested and failed," and repeating it will only lead to the same outcome. Iran will rely on its own capabilities and decades of experience in dealing with U.S. pressure tactics, using "all tools and capabilities" to protect national interests and the legitimate rights of its people.
Carrier rotation in the Middle East
The U.S. military confirmed on the 20th that the USS George Washington aircraft carrier arrived in the Middle East on the 19th, relieving the troubled USS Abraham Lincoln. U.S. Central Command stated on social media that the George Washington Carrier Strike Group arrived in the CENTCOM area of operations yesterday and is executing its deployment mission in the region as planned.
According to a person familiar with the matter, the nuclear-powered aircraft carrier USS Abraham Lincoln has begun its return voyage. However, a U.S. official said the Lincoln remains in the U.S. Fifth Fleet's operational area, meaning it has not yet left CENTCOM's area of responsibility. The Lincoln was deployed to the Middle East in January for military operations against Iran and the maritime blockade, spending over 250 days on deployment. Recently, reports surfaced about poor living conditions and mental health issues among sailors due to the intense operational tempo and extended deployment.
Another U.S. warship breaks down
Following the Lincoln's troubles, another U.S. Navy destroyer carrying 300 sailors suffered a breakdown in the Pacific and was dead in the water for four days. Analysts point out that such frequent "incidents" reveal the "overdraft effect" of U.S. militarism is gradually becoming apparent. According to U.S. media reports from the 17th, the destroyer USS Benfold lost power during a mission at sea in July and was subsequently towed to the Philippines for repairs. U.S. media called this another serious incident following the Lincoln's poor living conditions, questioning whether the Navy is overextended.
U.S. approves $4.5 billion arms sale to Qatar
The U.S. State Department announced on the 20th it has approved a potential arms sale to Qatar involving aerial refueling aircraft and related equipment, valued at up to $4.5 billion. Qatar has requested to purchase up to four KC-46A aerial refueling tankers, along with engines, radar warning receivers, infrared countermeasure systems, and associated parts and services. The sale will enhance the security capabilities of a "key U.S. strategic regional partner," supporting U.S. foreign policy and national security objectives, while bolstering Qatar's defense capabilities and interoperability with U.S. and allied forces, and cementing its strategic role in regional security.
The KC-46A is the U.S. Air Force's newest tanker, developed by Boeing based on the 767 airframe, with the first aircraft delivered in January 2019. According to Boeing, the aircraft provides aerial refueling support as well as the combat capabilities and data transmission functions required of a multi-mission tanker.
Comments