Top Iran official says US focus on economic warfare shows it has failed militarily

Iranian Parliamentary Speaker Says U.S. Economic Measures Reflect Limits on Military Options

Iran's Parliament Speaker Mohammad Bagher Qalibaf said on Friday that recent U.S. statements about intensified economic pressure indicate Washington cannot achieve its objectives through direct military action. Qalibaf, who serves as Iran's chief negotiator with the United States, made the remarks during a visit to Iraq.

"The Americans and the Israelis have realised that they cannot handle Iran…in the field of a hard military war, so they have entered into a cognitive war and an economic war," Qalibaf said at a 40-day commemoration event for Iran's late Supreme Leader Ali Khamenei.

Iran's Foreign Minister Abbas Araghchi also criticized the U.S. approach, describing it as economic terrorism intended to shift attention from domestic U.S. economic issues. In a social media post, Araghchi stated that continued reliance on existing policies would increase anti-American views in the region.

President Trump posted on Truth Social earlier in the week that the United States would carry out "the most crushing economic operation ever taken against any country" and urged allies to join the effort. The comments followed the expiration of a 60-day memorandum of understanding aimed at restarting negotiations to end ongoing hostilities. Diplomatic channels have remained stalled since that deadline passed.

A U.S. naval blockade remains in effect in the region. Iran has continued to limit vessel traffic through the Strait of Hormuz, a key route for oil shipments. The United States maintains broad sanctions that already restrict most trade between Iran and Western countries. In June, U.S. authorities added measures targeting refineries and other entities purchasing Iranian crude. Treasury Secretary Scott Bessent has indicated plans for secondary sanctions that could apply to entire countries conducting business with Iran.

Trump stated on Wednesday that any country permitting its financial institutions, businesses, airports, or government bodies to assist Iran would face "TREMENDOUS Economic Consequences." Bessent told CNBC on Thursday that Iran would encounter "the greatest coordinated economic isolation in the history of the world." He added that the measures were intended to collapse the Iranian government and called on allies to decide their positions.

Bessent noted that China has been the largest buyer of Iranian oil, accounting for roughly 90 percent of recent purchases. When asked whether China would face specific secondary sanctions, Bessent did not provide a direct answer. A Chinese foreign ministry spokesperson said on Friday that sanctions and pressure are not the solution and called for negotiations instead.

Bessent is scheduled to hold a press conference on Monday outlining the specific steps planned under the new economic measures.

Sina Toossi, a senior fellow at the Center for International Policy, told NPR that ideological hardliners currently hold influence over segments of Iran's government and that economic considerations are not their primary focus. "There's this existential threat that the Iranians have been faced with. So they're willing to bear much greater economic costs to kind of secure their survival," Toossi said.

The existing sanctions framework stems from multiple prior U.S. administrations and covers sectors including energy, banking, and shipping. Iranian officials have maintained that the restrictions have not altered core policy positions. U.S. officials have cited Iran's nuclear activities, regional military support, and restrictions on Hormuz traffic as factors behind the escalation of economic steps.

Emily Feng in Washington and Kate Bartlett in Johannesburg contributed to this report.