US intensifies sanctions on Iran as Tehran's leverage over Strait of Hormuz weakens
Six months after a conflict that rattled global markets, US economic pressure appears to be eroding Iran's position, according to a Reuters analysis. It remains unclear whether the hardship will be enough to force Tehran into concessions.
Half a year after a conflict that pushed the Persian Gulf region to the brink of wider war, Washington's economic campaign against Iran appears to be taking a toll, Reuters reports. The country now faces some of the harshest economic pressure in its history, as a US naval blockade and tightened sanctions curb oil exports and choke off the flow of foreign currency, deepening an already strained economy.
Diminishing leverage
US and regional officials hope the mounting pressure could push Iran to restore free shipping through the Strait of Hormuz, the passage through which roughly a fifth of the world's oil and natural gas moves. Iranian analyst Arash Azizi says the balance of power has shifted against Tehran: unable to fully close the strait, Iran has lost much of its ability to use it as leverage, while the naval blockade is genuinely hurting the country. The severe global economic shock Tehran had hoped would force Washington back to the negotiating table has not materialized, as other countries adapted to the disruption.
Domestic risks for Iran
Senior Iranian officials acknowledge that Washington's campaign is becoming harder to withstand, with the latest measures sharply restricting access to foreign currency, imports and international financial networks. Iran's leadership fears that rising prices, weakening trade and pressure on household incomes could reignite widespread protests, with shortages of key imports like grain and fuel adding to the concern.
US Treasury Secretary Scott Bessent has described the strategy as a combination of blockade and the toughest sanctions in history, arguing it will succeed in bringing down the regime. However, former US negotiator Dennis Ross cautions that the picture is more complicated — Iran still wants to demonstrate it can control the strait while limiting its use of force, keeping broader escalation as a fallback option. He suggested a possible deal could center on shipping fees through the strait, potentially giving both sides room to claim a face-saving outcome.
