RESOLVING THE LEDGER
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Iran's parliament speaker, Mohammad Bagher Ghalibaf, speaks during a commemoration ceremony for late Iranian Supreme Leader Ali Khamenei at the Imam Hassan Mosque in Karbala, Iraq, on Aug. 20. Hadi Mizban/AP hide caption
The Iranian regime has dismissed President Trump's threats to crush Iran economically, saying that years of U.S. sanctions have failed.
On Friday, Iran's parliamentary speaker, Mohammad Baqer Ghalibaf, the country's main negotiator with the U.S., said Trump's threat of an "economic D-Day" shows that Washington is unable to prevail militarily.
"The Americans and the Israelis have realized that they cannot handle Iran … in the field of a hard military war, so they have entered into a cognitive war and an economic war," he said during a visit to neighboring Iraq.
Iranian Foreign Minister Abbas Araghchi had also condemned Trump's announced pivot to economic warfare, calling it "economic terrorism" meant to divert attention from the United States' economic problems. He said in a social media post that doubling down on failed U.S. policies would further increase anti-American sentiment.
This week, Trump wrote on Truth Social promising "the most crushing economic operation ever taken against any country" and calling on allies to stand with the United States.
His remarks came as diplomatic efforts to revive peace talks are completely stalled, days after a 60-day memorandum of understanding to negotiate an end to the war expired.
A U.S. blockade is still in place, and Iran is still heavily restricting traffic through the Strait of Hormuz, a crucial oil waterway.
The U.S. already has extensive sanctions on Iran that make a lot of international trade with Western countries impossible, and in June, the U.S. also cracked down on refineries and businesses that buy Iranian oil. Now Treasury Secretary Scott Bessent is threatening even more secondary sanctions on nations — not just business entities — that do business with Iran.
On Wednesday, Trump wrote, "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences."
Bessent added in an interview on Thursday with CNBC that Iran will face the "greatest coordinated economic isolation in the history of the world."
"It is going to work in Iran, and we are going to collapse this regime. It is time for our allies and the rest of the world to make a decision," he said.
The threat of secondary sanctions has raised questions about how that will affect China, which buys Iranian oil and which was the only country Bessent mentioned by name.
"Unfortunately, they've been buying. They were the largest consumer of Iranian oil. They were buying about 90 percent of it," he said. But when asked whether China might be targeted, Bessent declined to answer.
On Friday, a Chinese Foreign Ministry spokesman called for negotiations rather than sanctions, saying, "Sanctions and pressure tactics are not the solution."
Bessent is expected to hold a press conference on Monday to give the details on how Trump's "economic D-Day" will be achieved.
Sina Toossi, a senior fellow at the think tank Center for International Policy in Washington, told NPR that ideological hard-liners now have control of parts of Iran's government and that the economy is not their priority.
"There's this existential threat that the Iranians have been faced with. So they're willing to bear much greater economic costs to kind of secure their survival," he said.
Emily Feng in Washington, D.C., and Kate Bartlett in Johannesburg contributed to reporting.
An earlier version of this story incorrectly referred to Sina Toossi as “she.” Toossi is a “he.”
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