What Happened

Iran's parliament speaker, Mohammad Bagher Ghalibaf, speaks during a commemoration ceremony for late Iranian Supreme Leader Ali Khamenei Hassan Mosque in Karbala, Iraq, on Aug. 20. Hadi Mizban/AP hide caption

The Iranian regime has dismissed President Trump's threats economically, saying U.S. sanctions have failed.

On Friday, Iran's parliamentary speaker, Mohammad Baqer Ghalibaf, the country's main ⁠negotiator with the U.S., said Trump's threat of an "economic D-Day" shows that Washington is unable to prevail militarily.

"The Americans and the Israelis have realized that they cannot handle Iran … a hard military war, entered into a cognitive economic war," he said during a visit to neighboring Iraq.

Why It Matters

Iranian Foreign Minister Abbas Araghchi had also condemned Trump's announced pivot to economic warfare, calling it "economic terrorism" meant to divert attention from the United States' economic problems. a social doubling down on failed U.S. policies would further increase anti-American sentiment.

This week, Social promising "the most crushing economic operation ever taken against any country" and calling on allies United States.

His remarks came as diplomatic efforts to revive completely stalled, days after a 60-day memorandum of understanding to negotiate expired.

A U.S. blockade , heavily restricting traffic through the Strait of Hormuz, a crucial oil waterway.

What Comes Next

The U.S. already has extensive sanctions a lot of international trade with Western countries impossible, , the U.S. also cracked down on refineries and businesses that buy Iranian oil. Now Treasury Secretary Scott Bessent is threatening even more secondary sanctions on nations — not just business entities — that do business with Iran.

On Wednesday, Trump wrote, "ANY country that allows its financial institutions, businesses, airports, or government entities to provide lifeline itself face TREMENDOUS Economic Consequences."

Bessent interview on Thursday "greatest coordinated economic isolation in the history ."

", collapse this regime. allies a decision," he said.

The threat of secondary sanctions has raised questions affect China, which buys Iranian country Bessent mentioned by name.

"Unfortunately, they've been buying. largest consumer of Iranian oil. They were buying about 90 percent of it," he said. whether targeted, Bessent declined to answer.

On Friday, a Chinese Foreign Ministry spokesman called for negotiations rather than sanctions, saying, "Sanctions and pressure tactics solution."

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