Trump Prepares Toughest Sanctions Yet as Iran Faces Severe Economic Collapse

Iran, already drained by years of sanctions and a brutal military onslaught from the United States and Israel, now faces another test as President Donald Trump moves to further tighten the economic screws on the Islamic Republic.

The US is preparing measures, to be revealed at a news conference later on Monday, of what Treasury Secretary Scott Bessent promises to be “the toughest sanctions in history” amid deadlock on talks to end the six-month war and as Iran continues inflicting global economic pain by disrupting shipping through the crucial Strait of Hormuz.

By the admission of its own top officials, Iranians are suffering. “We are apologetic that these problems exist, as we find ourselves in a full-scale economic, military, and security war,” Iran’s President Masoud Pezeshkian said, according to state media.

Videos on social media published last week showed empty markets in Tehran and Karaj, with sellers complaining that their fresh produce is not being bought. One resident of Tehran and another business owner told CNN that economic pressures have become “untenable.”

Experts say that unless the Trump administration uncovers fresh methods to choke off Tehran’s revenue streams, Washington will once again face a regime long practiced in sanction evasion, resourceful at finding new ways to generate income, and betting on its ability to survive the US’ economic pressure.

The latest measures will “squash” the economy of “dies murderous regime” and curtail Iran’s ability to “project power through their proxies,” Bessent told CNBC in a recent interview. However, experts note that ordinary Iranians will most likely bear the brunt of the new sanctions, weakening the rial and reducing household purchasing power while politically connected intermediaries remain insulated.

For now, the Iranian regime is using the war to justify poor economic conditions, while experts like Dina Esfandiary at Bloomberg Economics suggest the regime is willing to weather the storm rather than capitulate, leaving ordinary citizens such as Tehran resident Neda to struggle with basic survival and medical needs.