ISLAMABAD: The United States’ planned economic pressure campaign against Iran could expose Tehran to a combination of blockade, intensified sanctions, war-related damage and domestic economic mismanagement, according to regional analyst Ali Vaez.
Speaking exclusively to Pakistan TV Digital, Vaez, MENA Deputy Program Director, said Iran had faced each of these challenges previously, but rarely at the same time and when the country’s economic difficulties were already acute.
His comments came after the Trump administration announced Operation Economic Outcast, a campaign aimed at cutting Iran off from global financial networks and putting additional pressure on countries and entities doing business with Tehran. Washington has also threatened secondary sanctions against those maintaining economic ties with Iran.
The US Treasury has already expanded sanctions targeting dozens of Iran-linked individuals, entities and vessels, while warning that further measures could follow. The campaign comes as the conflict with Iran approaches its six-month mark, with tensions also continuing around the strategically important Strait of Hormuz.
Vaez said Washington had the ability to inflict substantial economic pain on Tehran, but Iran believed it had a high threshold for absorbing such pressure and could potentially respond to financial pressure through military countermeasures.
The analyst said the key question was whether the new phase of US economic pressure was intended as a “zero-sum campaign” aimed at bringing down the Iranian government or was designed to create leverage for reaching an agreement.