Is Iran Facing Economic Collapse? Trump Points to Blockade Losses

US President Donald Trump has claimed Iran is facing an acute financial crisis, alleging that the country is “collapsing financially” amid rising regional tensions and an ongoing maritime standoff.

According to Trump, Tehran is “starving for cash” and is “losing 500 Million Dollars a day,” a situation he linked directly to restrictions around the strategically critical Strait of Hormuz. In a post on Truth Social, he further suggested that internal discontent is growing within Iran’s power structure, stating that the “Military and Police [are] complaining that they are not getting paid.”

What Trump said

The remarks come against the backdrop of a high-stakes naval confrontation that has placed the Strait of Hormuz—one of the world’s most vital energy corridors—at the centre of geopolitical friction. Trump claimed that despite Tehran’s public rhetoric, its leadership is urgently seeking to reopen the passage.

“Iran doesn't want the Strait of Hormuz closed; they want it open so they can make USD 500 million a day (which is, therefore, what they are losing if it is closed!),” he posted, framing the blockade as a direct hit to Iran’s economic lifeline.

He went further, arguing that Iran’s aggressive posturing is largely performative. “They only say they want it closed because I have it totally BLOCKADED (CLOSED!), so they merely want to ‘save face,’” Trump added, portraying Tehran’s stance as a defensive response to US pressure rather than a strategic choice.

Trump also claimed that diplomatic feelers have already been extended through intermediaries. “People approached me four days ago, saying, ‘Sir, Iran wants to open up the Strait immediately,’” he said, hinting at possible backchannel negotiations even as public tensions remain high.

Hardline tone continues

However, the US President warned that conceding too quickly could undermine Washington’s leverage. “But if we do that, there can never be a deal with Iran unless we blow up the rest of their country, their leaders included!” he stated, underscoring the hardline tone that continues to shape his administration’s approach.

In a parallel development, Trump announced an extension of the existing ceasefire, describing it as an opportunity to allow diplomacy more time. Yet the move appears uncertain, as there has been “no immediate confirmation from Iran or Israel” regarding their willingness to uphold the truce.

Voices aligned with Tehran have meanwhile questioned Washington’s intent, suggesting the ceasefire extension is a tactical manoeuvre aimed at securing a “strategic advantage” while maintaining the “naval blockade.”

With the original ceasefire “set to expire shortly” before Trump’s intervention, the situation remains volatile. The continued closure of the Strait of Hormuz has heightened concerns over “international energy markets and maritime security,” reinforcing its central role in the unfolding crisis.

(With inputs from ANI)