Iran vows to 'neutralize' US economic war as Trump threatens unprecedented sanctions

The standoff between Washington and Tehran has entered a new phase of economic brinkmanship, with both sides escalating their rhetoric and tactics in a contest over control of global oil supplies and the chokepoint through which a quarter of the world's traded petroleum flows.

President Trump announced this week that the United States would launch what he called the "most crushing economic operation ever taken against any country," though he provided no specifics about what such measures would entail. Treasury Secretary Scott Bessent promised economic tactics that have "never been seen" before and scheduled a news conference for Monday to detail the administration's approach. The threats come as the US has already reimposed a blockade on Iranian ports beginning in mid-July, part of a sanctions regime that has been in place for nearly fifty years. Trump also warned that any country allowing its financial institutions, businesses, airports, or government entities to provide support to Iran would face economic consequences. At a campaign rally in South Carolina on Friday, Trump described the conflict as "a little detour" and suggested he views the Strait of Hormuz itself as American territory, saying he plans to declare it as such once Iran is defeated.

Iran's response has been swift and defiant. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, vowed to "neutralize the economic war" and threatened to shut down all oil traffic through the Strait of Hormuz if any neighboring countries join the American pressure campaign. He claimed Iran has shipped 70 million barrels of oil in the past one or two months alone, suggesting the blockade has not crippled Tehran's ability to move crude to market. Iranian state media characterized Trump's rhetoric as stemming from "desperation."

The real battlefield, however, is the Strait of Hormuz itself, where a shadow war over oil movement is unfolding. The US Department of Energy reports that roughly 8 to 9 million barrels per day are currently transiting the waterway, down sharply from pre-war levels. To achieve even these reduced volumes, oil companies have adopted what industry insiders call "dark transits"—a tactic in which tankers turn off their transponders and navigation systems to pass through undetected. The US Navy has been assisting these operations, helping chartered vessels shuttle crude from the Persian Gulf through the strait to the Gulf of Oman, where the oil is transferred to other tankers owned by the ultimate buyers before returning through the waterway. A CNN analysis found that shipping traffic through the strait rose 27 percent in the past week, though volumes remain well below historical norms.

Iran has granted selective passage to Iraqi oil tankers, a move that suggests Tehran is managing the strait as a negotiating tool rather than closing it entirely. The regime appears to have other priorities consuming its attention. Four years after the death of Mahsa Amini and the "Women, Life, Freedom" protests that followed, a renewed crackdown on how women dress has emerged in recent weeks, with videos circulating on social media showing women being shamed for not wearing the mandatory hijab. During the height of the conflict with the United States earlier this year, unveiled women were visible at pro-government gatherings and in state media, as security forces focused on the war effort. Now, as hardline leadership reorganizes under Mojtaba Khamenei and grapples with the economic fallout of the conflict, conservative clerics and politicians are pushing to enforce stricter dress codes, though authorities appear reluctant to launch a full crackdown for now.

Back in the United States, the economic pressure of the war is mounting. The national average gas price has risen nearly a dollar from a year ago, and refineries are caught in what analysts describe as a perfect storm of conflict and export restrictions that limits how much crude they can process into gasoline, jet fuel, and diesel. Trump has dismissed these domestic effects, blaming inflation on Democrats and promising that gas prices will soon decline. The administration's unspecified economic measures against Iran, when detailed on Monday, will likely intensify this pressure on global energy markets, even as oil companies devise new methods to keep crude flowing through one of the world's most critical waterways.