Connect with us

World

US economic chokehold on Iran reaches peak leverage as collapse risks emerge

Published

on

US economic chokehold on Iran reaches peak leverage as collapse risks emerge

NEWYou can now listen to Fox News articles!

U.S. economic pressure on Iran has reached one of its most powerful points in decades, but inconsistent enforcement has prevented sanctions from achieving their full impact, according to a former Treasury sanctions expert.

Miad Maleki, who played a central role in Treasury Department sanctions campaigns against Iran and its network of proxy groups, said in an on-camera interview the current moment reflects a rare convergence of economic, political and diplomatic leverage against Tehran.

“We’ve never had the level of leverage that we have today with Iran in the history of our conflict … since 1979,” Maleki said. 

His assessment comes as President Donald Trump signaled escalating pressure Thursday, writing on Truth Social that the United States has “total control over the Strait of Hormuz” and that it is effectively “sealed up tight” until Iran agrees to a deal.

Advertisement

IRAN PRESIDENT VOWS DEFIANCE AS PROTESTS BUILD AGAINST REGIME AMID US MILITARY BUILD UP

Maleki argues the current moment marks a turning point because multiple pressure tools — sanctions, a U.S. naval blockade, and tighter enforcement — are being applied simultaneously for the first time in years. Unlike previous cycles, he said, the strategy is now directly targeting Iran’s oil exports and the networks that help move them, raising the risk of a rapid economic squeeze.

He said Iran may run out of oil storage in as little as two to three weeks, forcing production cuts, while gasoline shortages could hit on a similar timeline due to heavy reliance on imports. Combined with an estimated $435 million in daily economic losses, the pressure could spill into the financial system, leaving the regime struggling to pay salaries and raising the risk of renewed unrest.

An oil tanker is seen near the terminal at Kharg Island, Iran, as U.S. officials and analysts consider whether seizing the island could significantly impact Iran’s oil exports. (Ali Mohammadi/Bloomberg)

Maleki said the real leverage lies in sustained economic pressure and enforcement.

Advertisement

At the core of that pressure is an Iranian economy he describes as “on the verge of collapse,” driven by years of sanctions and compounded by recent disruptions.

He pointed to triple-digit food inflation, a sharply devalued currency and a roughly 90% collapse in purchasing power, along with potential long-term oil revenue losses of up to $14 billion annually.

Maleki, who is currently a senior fellow at the Foundation for Defense of Democracies, estimated that current conditions are costing Iran “about $435 million a day in combined economic damage … with the blockade and closure of the Strait of Hormuz.”

A key driver of that pressure is the Strait of Hormuz, long viewed as one of Iran’s primary tools of leverage in global energy markets. Maleki said the dynamic has shifted.

IRAN IS ‘TRYING TO GIVE THE GLOBAL ECONOMY A HEART ATTACK’ BY CLOSING STRAIT OF HORMUZ, UAE MINISTER SAYS

Advertisement

President Donald Trump weighs a potential attack on Iran’s oil hub at Kharg Island amid expert predictions of market chaos. (Morteza Nikoubazl/NurPhoto)

“Iran’s economy relies on the Strait of Hormuz more than any other economy,” he said, calling its closure a form of “economic self-sabotage.”

While countries in Asia — including Japan, South Korea, India and China — are most exposed to disruptions, many have built up reserves. “Japan’s oil reserve is pretty significant. Same with China,” Maleki said.

Still, the region remains heavily dependent on the waterway, with roughly 75% of liquefied natural gas supplies for countries including India, China and South Korea flowing through the strait.

Inside Iran, however, vulnerabilities are more immediate. Despite vast oil reserves, the country imports between 30 million to 60 million liters of gasoline per day to cover a domestic shortfall of up to 35 million liters.

Advertisement

“If they run out of gasoline… they’re going to have a major crisis domestically,” Maleki said, noting that past shortages and price hikes have triggered widespread protests.

NUCLEAR EXPERTS WARN IRAN’S URANIUM ‘RIGHT’ IS A MYTH, SAY TRUMP IS RIGHT TO HOLD FIRM

The economic pressure is being reinforced by a U.S. naval blockade targeting Iran’s oil exports, the regime’s primary source of revenue.

A billboard showing a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed in U.S.-Israeli strikes, looms over an empty square in Tehran, Iran, Thursday, March 5, 2026. (Vahid Salemi/AP Photo)

A senior administration official said the Treasury Department is intensifying enforcement under what it describes as an “Economic Fury” campaign, using financial and maritime tools in tandem to squeeze Iran’s revenue streams.

Advertisement

The official said the strategy focuses on “systematically degrading Iran’s ability to generate, move, and repatriate funds,” including by constraining maritime trade through the naval blockade, which targets Iran’s primary source of revenue from oil exports.

Financial pressure is also expanding globally. The official said Treasury has warned banks in China, Hong Kong, the United Arab Emirates and Oman that facilitating Iranian trade could expose them to secondary sanctions, signaling a more aggressive approach to enforcement beyond Iran’s borders.

Treasury has issued sanctions on more than 1,000 targets since 2025 under the current maximum pressure campaign, the official said, aimed at disrupting Iran’s oil trade and financial networks.

The official added that Iran is facing immediate logistical constraints, warning that storage capacity at Kharg Island — the country’s main oil export terminal — could be filled within days if exports remain blocked, potentially forcing production shut-ins.

“Treasury will continue to freeze the funds stolen by the corrupt leadership on behalf of the people of Iran,” the official warned.

Advertisement

A new analysis from United Against Nuclear Iran said the blockade is already deterring high-value shipments, even as some Iran-linked vessels continue to transit the region.

TRUMP CLAIMS IRAN ‘STARVING FOR CASH,’ ‘COLLAPSING FINANCIALLY’ AFTER EXTENDING CEASEFIRE

Iran seized two oil tankers Thursday while former Iranian minister Ezzatollah Zarghami threatened to make the Strait of Hormuz a “massacre and hell” for U.S. forces. (Giuseppe Cacace/AFP)

“Effectiveness should not be measured by the total number of Iran-linked vessels at sea,” the group said in an April 22 statement. “But by whether the U.S. is disrupting high-value Iranian oil exports… and deterring large-scale illicit shipments.”

At least 29 vessels have been turned around or forced back to port, including several very large crude carriers, according to the report.

Advertisement

The blockade, announced April 12 and enforced by U.S. Central Command, is designed to cut off Iranian crude exports, particularly shipments to China, while prioritizing high-impact targets.

While sanctions are clearly biting, Maleki said their impact has been limited by inconsistent enforcement across successive U.S. administrations.

U.S. sanctions on Iran have been in place in various forms for years, targeting the country’s oil exports, banking sector and access to global financial systems.

Under the Obama administration, sanctions pressure was partially lifted under the nuclear deal. The first Trump administration reimposed “maximum pressure,” but enforcement ramped up gradually and lasted only a limited period. The Biden administration later eased enforcement in pursuit of diplomacy.

He argued that cycles of tightening and relief — including sanctions rollback under the Iran nuclear deal and pauses in enforcement — have allowed Tehran to adapt.

Advertisement

“What’s different now,” Maleki said, is the combination of sustained sanctions with real-time enforcement measures that directly restrict Iran’s ability to export oil — a step that was largely absent in earlier phases.

To maximize pressure, Maleki said Washington must sustain enforcement, particularly through secondary sanctions targeting foreign banks and companies facilitating Iranian trade.

Crucially, he downplayed the likelihood that outside powers could offset the pressure.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Anti-regime protests engulf the streets of Tehran, Iran, on Jan. 6, 2025. (Reuters)

Advertisement

“I can’t really point to any other nation… that is going to jump in and give the Iranian regime a lifeline,” he said.

“At some point in the next few weeks to a few months, they’re going to face not just gasoline shortages and oil production disruptions, but also a major banking problem to pay salaries of government employees and IRGC personnel,” he said. “Iranians run out of patience again, as they did before, and they’re back on the street. I’m not quite sure if you’re going to have unpaid IRGC forces willing to go back on the street and kill their fellow Iranians who have the same grievances that they have now, which is a collapsed economy.”

Advertisement

World

Leaked Iran report finds record public anger as regime focuses on holding power

Published

on

Leaked Iran report finds record public anger as regime focuses on holding power

NEWYou can now listen to Fox News articles!

A confidential report prepared for Iran’s presidency is raising a consequential question for Washington and its allies: Do extraordinary levels of public anger and support for systemic change justify reassessing whether the Islamic Republic may be more vulnerable to regime change than previously believed?

The classified document, titled “What Iran Wants,” reportedly found that only 9% of respondents supported maintaining the status quo, with 53% calling for fundamental or structural reforms and more than 19% favoring changing the political system outright.

Taken together, nearly three-quarters of those surveyed reportedly supported either deep structural reform or replacement of the existing system — findings that could strengthen arguments that Iran’s political crisis has moved beyond dissatisfaction with individual leaders or policies.

IRANIANS SPEAK OUT OVER POSSIBLE TRUMP-REGIME DEAL

Advertisement

Protesters march in downtown Tehran, Iran, Monday, Dec. 29, 2025. (Fars News Agency via AP)

IranWire reported on July 13 that it had obtained the document, which was compiled by Ali Rabiei, President Masoud Pezeshkian’s social adviser and a former government spokesman. It was based on polling conducted by the Ara Opinion Research Center in May 2026 and circulated among institutions within Iran’s governing structure in June, according to the outlet.

Miad Maleki, a senior fellow at the Foundation for Defense of Democracies, told Fox News Digital that the report should prompt a fresh assessment of the potential for political upheaval inside Iran.

“If anything, this research understates the depth of Iranians’ rage,” Maleki said. “And that is what makes it remarkable: even a survey prepared for the regime’s own president, by its own pollsters, records anger levels above 63%, well beyond the highest rate Gallup has ever recorded anywhere in the world, alongside 81% struggling to put food on the table and a majority expressing hopelessness.”

Maleki cautioned that polling conducted under an authoritarian government cannot be treated as precise because respondents may fear the consequences of expressing opposition.

Advertisement

“In a police state where expressing the wrong opinion can cost you your job, your freedom, or your life, respondents self-censor, which means these findings are best read as a floor, not a ceiling,” he said.

TRUMP ADMIN BYPASSES TEHRAN’S ISOLATION CAMPAIGN TO REACH IRANIANS DIRECTLY

In this picture obtained from Iran’s ISNA news agency, Mojtaba Khamenei (C), son of Iran’s supreme leader Ayatollah Ali Khamenei, walks along a street in Tehran on May 31, 2019. (Hamid FOROUTAN / ISNA / AFP via Getty Images)

The complete survey methodology was not included in the material obtained by IranWire. The report reportedly did not disclose how respondents were selected, who was questioned or whether the sample reflected Iran’s geographic and demographic makeup.

Its findings therefore cannot be independently verified or treated as definitive measurements of Iranian opinion. The report also cannot establish that dissatisfaction will translate into an organized movement capable of removing the government.

Advertisement

Still, its findings portray multiple pressures converging at once.

Approximately 64% of respondents reported persistent anger, up roughly 12% points from a previous government survey conducted in December 2025. Half reported hopelessness, approximately 48% reported sadness or depression and about 45% reported persistent fear or anxiety, according to IranWire.

Economic distress also appears central to the public anger.

More than 81% experienced severe or partial difficulty obtaining enough food, while 75% struggled to cover medical costs, IranWire reported. Fifty-four percent said their income did not cover current household expenses, and only 8% reported earning enough to save.

Respondents blamed domestic governance more frequently than international pressure. 46.9% cited government inefficiency as the cause of Iran’s economic problems, 26.3% blamed corruption and 20.7% cited foreign sanctions.

Advertisement

IRAN TO EXECUTE FIRST FEMALE PROTESTER TIED TO ANTI-REGIME UNREST

Thousands gathered at Revolution Square in Tehran on May 30, 2026, to protest attacks by the US and Israel on Iran, carrying Iranian flags and posters of the late Supreme Leader Ali Khamenei. (Fatemeh Bahrami/Anadolu)

That finding could be especially significant to the regime-change debate because it suggests many Iranians do not primarily blame outside powers for their deteriorating living conditions.

The document also points to a crisis of institutional confidence. Roughly 60% reportedly distrusted major government institutions, while 61.2% negatively assessed officials’ ability to solve Iran’s problems. Distrust of the government, parliament, judiciary and state television remained above 50%, IranWire reported.

The report’s recommendations, however, reportedly centered on managing dissatisfaction rather than addressing demands for systemic change.

Advertisement

Rabiei urged state institutions to better explain the impact of sanctions, moderate the rhetoric used by officials and religious platforms, present a more inclusive image through state television and avoid policies that place the government in direct confrontation with society.

Cars burn in a street during a protest over the collapse of the currency’s value in Tehran, Iran, Jan. 8, 2026. (Stringer/WANA (West Asia News Agency) via REUTERS)

IranWire’s follow-up analysis argued that the recommendations treated Iran’s crisis primarily as a communications and public-perception problem. The report offered few concrete proposals involving institutional accountability, political liberalization or fundamental economic reform, according to the outlet.

Maleki said the findings were consistent with the expanding scale of unrest, citing demonstrations that spread from more than 80 cities in 2017 to more than 200 cities across all 31 provinces this year, alongside what he described as a quadrupling of strikes.

“Iranians have moved from being skeptical of what another revolution might bring to concluding there is no alternative to one, because reform has proven impossible,” Maleki said.

Advertisement

Yet the report does not resolve one of the largest obstacles to regime change: The Islamic Republic has spent decades building institutions designed to monitor, deter and violently suppress organized opposition.

“This regime was born of revolution, by revolutionaries,” Maleki said. “Preventing and crushing the next one is the one thing they genuinely know how to do.”

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Buses that were burned during Iran’s protests, in Tehran, Iran, Jan. 21, 2026. (Majid Asgaripour/WANA (West Asia News Agency) via Reuters)

He nevertheless argued that further unrest was inevitable.

Advertisement

“So the discontent will translate into renewed protest,” Maleki said. “The question is not if, but when, and whether anyone is prepared to stand with the Iranian people when it does.”

Continue Reading

World

Rule of Law in Hungary shows ‘radical change’ under Magyar, EU says

Published

on

Rule of Law in Hungary shows ‘radical change’ under Magyar, EU says

Published on Updated

Hungary has taken significant steps to restore the rule of law in the two months since Prime Minister Péter Magyar took office, the European Commission said in a report presented on Friday.

ADVERTISEMENT


ADVERTISEMENT

The new government has launched “intense reform efforts”, with several legislative changes already advanced, according to the report, which describes the progress made as “impressive” given the short time since the change of government.

Advertisement

“You have a very radical change compared with last year’s report. Things have moved very, very quickly in the right direction,” a senior EU official told Euronews.

A key development was Hungary’s recent decision to join the European Public Prosecutor’s Office, which investigates and prosecutes financial crimes affecting the EU budget across member states.

The report also highlights progress in several areas, including anti-corruption measures, asset declarations and the work of the Integrity Authority.

Magyar has also dismantled the “Sovereignty Protection Office”, a body established under his predecessor, Viktor Orbán, which could access citizens’ personal data to investigate and sanction alleged foreign agents. The office had been targeted by an EU infringement procedure.

“We see some very positive trends […] in the early weeks of the new government’s mandate, a lot has already been done,” EU Justice Commissioner Michael McGrath said during a press conference presenting the report.

Advertisement

‘Things can’t change overnight’

Despite the reform push, the Commission said significant shortcomings remain in Hungary’s justice system.

“Things cannot completely change overnight,” a senior EU official told Euronews, stressing that many recommendations made in previous years’ reports have yet to be addressed.

One example is the procedure for appointing the Prosecutor General, which remains a concern for the Commission because it could allow undue political interference in individual cases.

The Commission does not rank EU countries’ performance, but publishes dedicated chapters assessing each member state. For Hungary, the remaining concerns include the functioning of the judiciary, corruption risks and unresolved violations of EU law.

Civic space also continues to be classified as “obstructed” in the report. The complexity of registration procedures in Hungary remains a challenge for smaller organisations with limited resources.

Advertisement

The Rule of Law Report could become increasingly important in the coming years, as the European Commission seeks to strengthen the link between compliance with rule-of-law standards and the allocation of EU funds under the 2028-34 EU budget.

Countries that fail to meet these standards could see payments suspended, although Commissioner McGrath stressed that there would be no automatic mechanism triggered solely by the report’s findings.

Continue Reading

World

US strikes bridges and collapses a tower at a key port as its Iran campaign expands

Published

on

US strikes bridges and collapses a tower at a key port as its Iran campaign expands

DUBAI, United Arab Emirates (AP) — A tanker came under attack traveling through the Strait of Hormuz taking the route closest to Oman, the British military said Friday.

The report from the United Kingdom Maritime Trade Operations center described the strike as happening early Friday and involving a projectile hitting the vessel.

The UKMTO said the ship sustained minor damage to its port side.

“All crew are safe and accounted for, no environmental impact has been reported and the vessel is continuing to its next port of call,” the UKMTO said.

Iran has been attacking tankers traveling on the route near Oman but did not immediately acknowledge any attack.

Advertisement

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

DUBAI, United Arab Emirates (AP) — The United States expanded its airstrike campaign against Iran early Friday by hitting more bridges and collapsing a tower at a key Iranian port, part of U.S. President Donald Trump’s threats to start striking infrastructure to pressure Tehran to ease its chokehold on the Strait of Hormuz. Iran launched new missile attacks against U.S.-allied nations in the Middle East, including Qatar, a key mediator in the war.

The interim ceasefire agreed to last month has collapsed, and the region has endured days of back-and-forth attacks by the U.S. and Iran as they battle for control of the strait. Iranian officials say U.S. strikes have killed dozens of people and wounded hundreds of others, with new casualties reported in Friday’s strikes.

When the U.S. and Israel launched the war on Iran on Feb. 28, Tehran effectively closed the strait to shipping traffic, a move that sent the price of oil soaring and gave Iran major leverage in negotiations.

Speaking in a primetime address to the American public, Trump insisted the war was going well.

Advertisement

“We are likewise winning big in Iran, and you will see the fruits of that labor very, very shortly,” Trump said.

Bridges and a port tower hit in Iran

The U.S. airstrikes hit bridges overnight into Friday in Iran’s southern Hormozgan province, killing at least seven people, Iranian state television reported. The attacks hit Bandar Khamir, a city on Iran’s coast on the Strait of Hormuz.

The highway and railway bridge strikes appeared aimed at cutting off Bandar Abbas, Iran’s main port, from roads leading into the Islamic Republic’s central region onward to Tehran, the capital.

While other routes still are open, the U.S. strikes could expand further, potentially disrupting both the movement of military materiel and goods needed for Iran’s 90 million people.

The U.S. military’s Central Command said it hit dozens of targets in its latest airstrikes, which concluded at dawn Friday, the sixth night in a row of American attacks.

Advertisement

Sign up for Morning Wire:
Our flagship newsletter breaks down the biggest headlines of the day.

Advertisement

The strikes also collapsed a tower at Iran’s Chabahar port on the Gulf of Oman, a key trade route for landlocked, neighboring Afghanistan, the state-run IRNA news agency reported.

U.S. Defense Secretary Pete Hegseth shared the image of the surveillance tower collapsing, part of his effort to assert American control over the strait. That image had circulated social media via activists prior to Hegseth sharing it.

Chabahar port, which Iran had been running with support from India, has been a repeated target of American airstrikes. Iranian state media acknowledged a third round of strikes on the facility without immediately acknowledging the tower’s collapse.

Iran described the tower as overseeing commercial traffic into the port. However, Iran’s paramilitary Revolutionary Guard also operates at ports across the country.

Iran retaliates by targeting Qatar, a mediator in the war

On Friday, Qatar twice warned the public to take shelter as a barrage of Iranian missiles targeted the nation. People heard explosions overhead as air defenses fired to intercept the missiles. Qatar’s Interior Ministry said falling debris wounded a child.

Advertisement

Qatar, along with Pakistan, is a key mediator in trying to reach an end to the Iran war. But talks have broken down over Iran’s chokehold on the Strait of Hormuz.

Iran also targeted Bahrain and Kuwait early Friday. Jordan’s military said it intercepted three incoming missiles Friday morning launched by Iran.

Explosions also could be heard Friday morning in Irbil and Sulaymaniyah in northern Iraq’s semiautonomous Kurdish region as air defenses targeted incoming fire. There was no immediate word on any damage.

Strikes come as Iran and US vie for Strait of Hormuz

Trump has returned in recent days to his threats to target Iranian power stations and bridges to try to compel Iran to loosen its hold on the strait, through which about a fifth of all oil and natural gas traded once passed in peacetime. The U.S. also reimposed a naval blockade on Iranian ports to halt its shipments of crude oil.

Week-to-week cargo shipments through the strait dropped by almost a quarter at the beginning of the month, according to maritime data firm Lloyd’s List Intelligence. And that was before the recent surge in tit-for-tat attacks.

Advertisement

Given the risks, some oil shippers are transiting the strait with their location devices turned off, but many are just staying put, Lloyd’s said Thursday. A growing amount of the region’s energy is being shipped through pipelines, but not nearly enough to offset the decline in shipping through the strait.

U.S. forces have redirected three commercial vessels trying to run the blockade, disabled one that did not comply and boarded another “to ensure full compliance,” the U.S. military’s Central Command said in a post on X.

___

Associated Press writers Amir Vahdat in Tehran, Iran, Annika Wolters in Rayong, Thailand, and Stella Martany in Irbil, Iraq, contributed to this report.

Advertisement

Continue Reading
Advertisement

Trending