Day 179 | US vows “economic asphyxiation” of Iran with new sanctions

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Read more: Day 180 | Iranians queue for petrol after US announces new sanctions

Iranian Deputy Foreign Minister Kazem Gharibabadi said the Strait of Hormuz remains closed and under Iranian control, dismissing reports that ships are currently passing through the waterway as “baseless.”

“America and other countries should know that the Strait of Hormuz will not be opened except through Iranian arrangements,” Gharibabadi said in a televised interview.

He said Iran remains “in a state of war” and has informed Pakistan, Oman, and Qatar that normal arrangements for the strait cannot be maintained under the current circumstances.

Gharibabadi added that Iran and Oman have reached an “understanding” to begin technical talks on an alternative route to the historic shipping route through the Strait of Hormuz.

Iranian Foreign Ministry spokesman Esmaeil Baghaei mocked the Trump administration’s “Economic D-Day” sanctions against Iran in a post on X.

Baghaei criticized Washington for demanding that banks, companies, ports, and governments choose between following US policies or facing sanctions.

“When a bully declares that every bank, company, port, and government must choose between obeying Washington’s whims or facing American vengeance, this is no longer just about Iran,” Baghaei wrote.

He also dismissed those who viewed the US pressure campaign as acceptable, saying: “It is absolutely not fine.”

U.S.: “Economic D-Day.”

Those who prefer to appear 'as obedient as shadows' say: “This is fine.”

But hold on. It is absolutely not fine.

When a bully declares that every bank, company, port, and government must choose between obeying Washington’s whims or facing American… pic.twitter.com/PT1myR0w3G

— Esmaeil Baqaei (@IRIMFA_SPOX) August 25, 2026

Iranian Parliament Speaker Mohammad Bagher Ghalibaf met Faiq Zaidan, chairman of Iraq’s Supreme Judicial Council, in Tehran, according to Ghalibaf’s official Telegram channel.

The two officials discussed bilateral relations during Zaidan’s visit to Iran, which came days after Ghalibaf completed a three-day visit to Iraq.

The neighboring countries have sought to ease tensions in recent weeks following US-Saudi strikes on bases belonging to Iraq’s Iran-backed Popular Mobilization Forces.

Saudi Arabia said the strikes followed drone attacks launched by the PMF against its territory.

China warned Tuesday that US threats of economic sanctions against Iran would “only further intensify tensions,” urging Washington not to disrupt Beijing’s cooperation with Tehran.

The warning came a day after US Treasury Secretary Scott Bessent pledged what he described as an “economic D-Day” targeting countries that purchase Iranian oil.

Meanwhile, Iran and Oman outlined a proposal to establish a temporary shipping channel through the Strait of Hormuz, according to regional officials, following weeks of difficult discussions.

US unmanned submarines have scanned the Strait of Hormuz and identified more than 100 objects suspected of being naval mines, Axios reported, citing US officials.

The report said the unmanned submarines were deployed to survey the strategic waterway amid heightened tensions over maritime security.

US Treasury Secretary Scott Bessent said Iran’s leadership is acknowledging what the world is seeing and that economic pressure is having an impact.

Bessent said Iranian President Masoud Pezeshkian had acknowledged the country’s economic crisis and said the war would have to end at some point.

“We will continue to cut every economic lifeline that supports the regime until Tehran finds itself isolated,” Bessent said.

Iranian Vice President Mohammad Reza Aref said Tehran’s control over the Strait of Hormuz is an exercise of what he called Iran’s “legal and sovereign right” over its national wealth.

“The Strait of Hormuz is the property of Iran,” Aref said, according to Iran’s ISNA news agency.

Aref also warned Iran’s adversaries, saying Tehran is “fully prepared to confront the enemy” and would make anyone who threatens Iran “regret it.”

US President Donald Trump announced that the United States Navy has successfully cleared and detonated all naval mines located in the international waters of the Strait of Hormuz.

In a statement released online, President Trump issued a strong warning to Tehran, emphasizing that any Iranian ship attempting to deploy new mines in the vital waterway will be destroyed immediately and systematically. He noted that the US Space Force is closely monitoring the region, alongside key nuclear sites, enforcing a strict "zero tolerance" policy regarding maritime security.

Iranian President Masoud Pezeshkian said ending the war and preserving national unity are among his government’s top priorities.

Pezeshkian said Iran’s enemies had realized they could not subdue the country militarily and had therefore shifted their focus toward social issues and economic discontent.

He stressed that his government would prioritize efforts to end the war while maintaining unity inside Iran.

Pakistan’s Interior Minister Mohsin Naqvi met the acting US ambassador to Pakistan in Islamabad after returning from Tehran, where he and Army Chief Asim Munir held talks aimed at easing the war with Washington.

Pakistan’s Interior Ministry said the meeting focused on the “overall situation in the region” and issues related to peace and stability.

Naqvi accompanied Munir to Tehran on Monday as part of diplomatic efforts between Washington and Tehran.

“Significant progress was made, and the meeting concluded on a highly positive note,” Naqvi said, expressing hope that the momentum would lead to further progress and lasting peace in the region.

Iran described Munir’s visit as “highly productive,” saying it resulted in “significant diplomatic achievements.”

Iran’s armed forces are fully prepared to defend the country’s territory, the deputy commander of the Iranian Navy said, according to the official IRNA news agency.

He said Iran has strengthened its defense capabilities by updating its military systems, equipment, and personnel.

Iranian authorities have foiled a plan to smuggle weapons into the country through border areas of Sistan and Baluchestan province, Iran’s Fars news agency reported Tuesday.

According to Fars, citing the commander of Iran’s Border Guard Command, security forces disrupted the alleged smuggling operation before the weapons could be brought into the country.

• Power cuts out during Iran blackout committee meeting.
• Iran lawmakers lose power while discussing outages.
• Blackout hits Iranian parliament energy crisis meeting.
• Iran energy officials plunged into darkness mid-meeting.
• Power outage disrupts Iran grid crisis talks.

A meeting of the Iranian Parliament's Energy Committee was plunged into darkness on Monday when a sudden blackout hit the parliamentary hall as lawmakers were actively discussing nationwide power cuts.

The incident occurred during a scheduled session attended by the Deputy Minister of Energy alongside senior officials from the country's power industry, who were summoned to report on the state of the national grid.

Iranian media outlets reported that committee members were mid-discussion on the underlying causes of recent blackouts and evaluating strategies for sustainable power generation when the lights unexpectedly went out in the room.

The outage highlights the depth of the power grid challenges currently facing Iran, where frequent and unannounced rolling blackouts have increasingly disrupted residential areas, public infrastructure, and administrative functions.

• Trump claims Iran failing to pay military personnel.
• He accuses Iran of unprecedented crackdown on protesters.
• Trump warns of “epic” humanitarian crisis in Iran.
• He demands Iran halt violence against protesters.
• Trump says Iran’s military faces mounting pay crisis.

US President Donald Trump issued a statement on Truth Social condemning the Iranian government, alleging that Tehran is no longer paying large segments of its armed forces while escalating a violent crackdown against civilians.

In the social media post, Trump characterized the internal situation in Iran as a severe humanitarian emergency demanding immediate intervention.

"The failing Islamic Republic of Iran is not paying large segments of their military, while at the same time killing protesters, even when they are not protesting, at levels not seen before," Trump wrote. "It is a humanitarian crisis of epic proportions, and must be stopped, NOW."

Trump's public remarks come amid severe economic pressure on Tehran, including hyperinflation, currency devaluation, and an ongoing US naval blockade affecting commercial trade routes.

The US President previously asserted that Iran's economy and military infrastructure are under heavy strain, pointing to reports of unpaid military personnel as evidence of the regime's compounding financial difficulties.

• US diplomats prepare to return following emergency evacuations.

The US State Department is preparing to return American diplomats and Foreign Service personnel to Middle Eastern diplomatic missions following emergency evacuations conducted before and during the recent war with Iran, The New York Times reported Tuesday.

An internal State Department document cited by the newspaper indicates that Washington could begin rolling back emergency measures and redeploying diplomatic staff to regional embassies as early as this week.

The planned redeployment follows months of heightened security protocols and mandatory departure orders issued for non-essential staff and diplomatic families across several regional capitals as regional tensions escalated into direct conflict. 

Read more: US to rotate aircraft carriers in Middle East amid Iran war

Escalation history

The initial drawdown of American diplomatic personnel was carried out across key regional outposts, including missions in Iraq, Bahrain, and Kuwait concurring with escalating military confrontations between the US, ‘Israel’ and Iran. 

Washington had ordered non-essential personnel and military dependents to evacuate prior to the outbreak of hostilities, citing threats to US assets and military installations in the region.

While the internal document signals an effort by the US administration to restore standard diplomatic operations, regional stability has not been fully restored.

US diplomatic facilities across the region continue to operate under heightened security alerts as Washington seeks to re-establish its physical footprint amidst the broader, ongoing geopolitical fallout.

• US intelligence predicted Hormuz closure, regional retaliation.
• Six-week Iran campaign becomes six-month stalemate.
• Mojtaba Khamenei remains in power as IRGC tightens grip.
• US shifts from strikes to blockade, sanctions.

Days before initiating a major military campaign against Iran on February 28, US President Donald Trump received explicit warnings from the US intelligence community that targeting Iran’s top leadership would fail to cause a regime collapse and instead trigger severe regional escalation, according to an extensive investigation by The Wall Street Journal.

During crucial Oval Office deliberations, key national security officials presented assessments indicating that eliminating Supreme Leader Ali Khamenei would produce the opposite of the administration's intended outcome.

Then-Director of National Intelligence Tulsi Gabbard briefed the US President directly, stating that targeting Iran's supreme leader would likely empower an even more unyielding hardline government.

Warnings of hardline escalation 

According to sources familiar with the high-level briefings who spoke to The Wall Street Journal, US intelligence warned that a successor regime in Tehran would view nuclear capability as its ultimate "insurance policy" against future foreign attacks.

Officials cautioned that a new leadership structure would immediately act to block the Strait of Hormuz and order direct strikes against US forces and bases stationed across the Middle East.

Simultaneously, senior Pentagon leaders raised alarms regarding expected American casualties and the rapid strain on precision-guided munitions stockpiles.

Public warnings from Iranian officials had long asserted that any direct attack would prompt an immediate shutdown of the Strait of Hormuz, threatening global energy routes.

International analysts similarly cautioned that a large-scale military offensive would compel Tehran to cross the nuclear threshold to secure regime survival.

Despite these internal and external warnings, US President Trump moved forward with the operation, persuaded by advisors who argued that the Iranian government was at an unprecedented low point and backed by offensive plans presented by Defense Secretary Pete Hegseth and military commanders.

Operational reality 

Six months after the campaign began, the forecasts outlined by intelligence agencies have largely materialized, The Wall Street Journal reported.

While Ali Khamenei was killed by 'Israeli' forces early in the conflict, the government did not collapse. Instead, his son, Mojtaba Khamenei, assumed power, with the Islamic Revolutionary Guard Corps (IRGC) consolidating control, resisting capitulation, and continuing to target commercial shipping in the Strait of Hormuz.

Rather than concluding within six weeks, the conflict has stretched into its sixth month.

US forces have suffered 18 deaths and 756 wounded, along with damaged regional bases, depleted military stockpiles, and severe disruption to global energy markets, while Iranian casualties are estimated at approximately 3,000.

Following the breakdown of successive temporary ceasefires, US President Trump has shifted away from direct offensive strikes toward an extended naval blockade and sweeping sanctions aimed at crippling Iran economically.

Iran’s IRGC-affiliated news outlet “Fars” has released -for the first time- what it says is archival footage of current Supreme Leader Mojtaba Khamenei. 

The undated video seems to show him during a religious academic session.

Residents of Iran's southern city of Minab visit the ruined Shajareh Tayebeh school and graves of children, six months after a strike during the opening hours of the US-‘Israel’ war with Iran killed at least 155 people, most of them children.

The United States is offering rewards of up to $10 million for information leading to the identification or location of five senior commanders in Iran’s Islamic Revolutionary Guard Corps (IRGC), according to a notice from the State Department’s Rewards for Justice program.

The program specifically seeks tips on IRGC Commander Ahmad Vahidi; Ali Abdollahi, head of the Khatam al-Anbiya Central Headquarters; Saeed (or Sa’id) Aghajani, commander of the IRGC Aerospace Force’s drone unit; Hamidreza Lashgarian, chief of the IRGC Cyber-Electronic Command; and Majid Khademi, commander of the IRGC Intelligence Organization.

“These individuals lead IRGC units that have targeted U.S. personnel with armed attacks and U.S. critical infrastructure with malicious cyber operations,” the Rewards for Justice program stated.

These individuals lead IRGC units that have targeted U.S. personnel with armed attacks and U.S. critical infrastructure with malicious cyber operations.

Help us disrupt these threats. Submit a tip today.https://t.co/LIA7B3NRK7 pic.twitter.com/IPxZ0skF40

— Rewards for Justice (@RFJ_USA) August 24, 2026

Washington describes the IRGC as playing “a central role in Iran’s use of terrorism as a key tool of Iranian statecraft.”

The notice adds that the five officials “command and direct various elements of the [IRGC], which plans, organizes, and executes terrorism around the world.”

Individuals who provide actionable information may also qualify for relocation assistance in addition to the financial reward, depending on the value of the tip.

The latest offer follows an earlier Rewards for Justice campaign in March 2026 that sought information on Iran’s then-new supreme leader Mojtaba Khamenei and other senior figures linked to the IRGC.

Several of those previously listed officials were later reported killed in ‘Israeli’ airstrikes.

US officials say the program aims to gather intelligence on the IRGC’s leadership and networks amid ongoing tensions, including after leadership changes within the organization following military strikes earlier in the year.

The IRGC has long been designated by the United States as a Foreign Terrorist Organization.