Washington. The tension between America and Iran now seems to be deepening on the economic front. US Finance Minister Scott Bessant has warned of imposing the toughest sanctions in history against Iran. He said that America will try to isolate Tehran economically and increase pressure on Iran's government. Besant also said that maximum economic pressure does not mean resuming military action at this time.
What major action is America going to take against Iran?
According to Besant, America will take such steps that can limit Iran's economic capacity and access to its allied armed groups. He said that US action could also be taken against countries that continue doing business with Iran. Besant indicated that details of the steps to be taken against Iran would be given at a media meeting to be held on Monday. That means America's new strategy cannot be limited to imposing sanctions only.
Why did America warn China?
America has also increased pressure regarding China's trade relations with Iran. Besant asked China to come along with the American program and cooperate in efforts to reopen the Strait of Hormuz. He said that China fulfills a large part of its energy needs from the Gulf region. Therefore, it is in China's own interest for Hormuz to remain open. America did not give a clear answer to the question of possible action on China, but said that some conversations are better on a personal level.
What did Trump announce on Iran?
A day earlier, US President Donald Trump had announced the biggest economic action ever taken against Iran. He called it an unprecedented economic war and isolation strategy. Trump talked about targeting Iran's oil smuggling network, financial transactions, currency exchange centers, ship registration and fake companies. He also appealed to the allied countries to support America in isolating Iran.
Why is the Strait of Hormuz important in this entire dispute?
The Strait of Hormuz has become one of the most important issues in the increasing tension between America and Iran. It is included in the major energy routes of the world. Trump says the strait is open and the US naval blockade has been effective. On the other hand, Iran has taken a strict stance regarding this. Iranian Parliament Speaker Mohammad Bagher Ghalibaf has previously said that Tehran will not agree to reopening unless the US fulfills its commitments.
What did Iran say to US sanctions?
Iran's Foreign Ministry has strongly condemned the new US sanctions. Iran has called them 'economic terrorism' and crimes against humanity. Tehran alleges that America has been pursuing a hostile policy against the Iranian people for decades. Iran said that economic sanctions and pressure are just another form of war and military attack. He also made it clear that despite American pressure, he will continue to protect his security, independence and national interests.
Was the threat of military action averted after economic pressure?
Besant has said that maximum economic pressure probably does not mean resumption of military action. This indicates that at present America is giving priority to economic and financial pressure. However, Trump has reiterated that Iran will not be allowed to acquire nuclear weapons. In such a situation, the military option cannot be considered completely eliminated. Tension in Hormuz and Iran's reaction may decide the direction of the situation in the coming days.
Can China also get drawn into the US-Iran conflict?
At present there is a direct economic conflict between America and Iran, but the issue of China can make it bigger. China has trade relations with Iran and its energy needs are linked to the Gulf region. America wants China to cooperate in increasing pressure on Iran. At the same time, Iran is not showing any signs of accepting American sanctions. In such a situation, if America also takes action against countries doing business with Iran, it could have an impact on global trade, energy prices and diplomatic relations.