Trump: Iran’s economy is ‘shot,’ Tehran running out of time

President Trump says Iran’s economy is nearing “the breaking point,” calling the regime’s collapse just a matter of time.

By David Rosenberg, World Israel News

President Donald Trump said Wednesday that Iran is approaching a breaking point under mounting US military and economic pressure, arguing that Tehran has lost much of its military strength while its economy has been crippled by war, sanctions and the blockade of its oil exports.

“Their economy is totally shot,” Trump said during an event at the White House, before adding that “it’s just a question of time.”

Trump argued that Iran is increasingly unable to sustain its confrontation with the United States, pointing to the destruction of Iranian aircraft, naval vessels, military infrastructure and senior leadership during months of fighting.

The president also claimed Iran was experiencing inflation approaching 300% and described the rial as essentially worthless. The Iranian rial also plunged past 2 million to the US dollar in August, reaching a record low, though estimates place the inflation rate below Trump’s claims of 300%.

The International Monetary Fund has projected Iranian inflation could approach 70% this year as the country struggles with collapsing oil revenues, wartime damage, sanctions and growing difficulty financing government spending.

The deterioration has accelerated since Washington reinstated its naval blockade of Iran in July.

Iranian crude loadings plunged from roughly 2 million barrels per day in March to only about 220,000 to 255,000 barrels per day in August, according to shipping data cited by Reuters. For roughly seven weeks, Iran has been unable to send meaningful new crude shipments through the Strait of Hormuz to China, previously the principal remaining buyer of its oil.

The loss threatens one of Tehran’s most important sources of foreign currency and government revenue.

Trump said Wednesday that US forces now effectively control the Strait of Hormuz and that oil tankers are continuing to move through the strategic waterway despite Iranian efforts to disrupt shipping.

The strait remains one of the most volatile fronts in the conflict. Two tankers carrying Saudi crude were struck by projectiles this week, while Iran has sought to restrict maritime traffic and the United States has attempted to keep oil shipments from allied Gulf states moving.

Trump’s comments came after another round of US strikes against Iranian military positions near the strait. He said earlier Wednesday that US forces had destroyed newly constructed Iranian radar, missile and other military equipment and warned Washington remained prepared to attack again.

Asked how long the renewed fighting could continue, Trump replied that he did not expect it to last long, adding: “I don’t know how much more they can take.”

The administration has simultaneously intensified its effort to squeeze Iran economically.

Treasury Secretary Scott Bessent said this week that Washington is considering further restrictions targeting Iranian banking, aviation, shipping and digital assets as it attempts to sever Tehran from the international financial system.

The administration has also threatened countries and companies that continue doing business with Iran with secondary US sanctions.

Bessent has argued that Iran is increasingly resorting to military retaliation because it is “losing economically.”

Iranian officials acknowledge the pressure but reject US assertions that the economy is approaching collapse.

Central Bank Governor Abdolnaser Hemmati said this week Tehran still possessed sufficient foreign-currency reserves and announced that the central bank was prepared to inject as much as $2 billion into foreign-exchange markets to stabilize the rial.

“Collapse has never happened and will never happen,” Hemmati said, while acknowledging that economic conditions and the management of ordinary Iranians’ livelihoods had become increasingly difficult.

Iranian President Masoud Pezeshkian and other senior officials have also acknowledged falling government revenue, reduced foreign trade and severe strains caused by the war and blockade. Iran’s foreign trade has reportedly declined by roughly 35%.

Prime Minister Benjamin Netanyahu said Wednesday that Israeli government and security institutions were working to defeat and ultimately bring down Iran’s regime, declaring that it would eventually fall.