Iranian President Masoud Pezeshkian said on Friday that it was time to end the months-long conflict with the United States, arguing that Tehran now holds the upper hand. "It is better that we bring the war to an end now as we are in a position of power and dignity," he said. "The whole world acknowledges our victory and emphasises that America has attacked our schools, hospitals and infrastructure in violation of all regulations and is hated around the world."
His remarks came as Washington prepares to escalate economic pressure on Tehran, a move that US Treasury chief Scott Bessent described as "Economic D-Day." Iran's foreign ministry responded by accusing the US of "economic terrorism" and "crimes against humanity," stating that "the perpetrators and instigators of these sanctions are deserving of trial and punishment for committing such heinous crimes."
Sanctions and stalemate
Foreign Minister Abbas Araghchi dismissed the US plan on X, writing: "The so-called 'Economic D-Day' is a diversion from America's own crisis: unprecedented debt & surging interest costs." Talks between the two countries remain suspended, with both sides locked in a stalemate since the war began in late February. Tehran continues to block the Strait of Hormuz, while Washington maintains a naval counter-blockade of Iran.
Washington has urged allies, including China, to join its efforts to isolate Iran's economy. However, Chinese foreign ministry spokesperson Lin Jian told reporters on Friday that "sanctions and pressure will not help resolve the issue." He added that "China calls on all relevant parties to take responsible measures and resolve the problem through political and diplomatic means."
The diplomatic friction comes ahead of Chinese President Xi Jinping's visit to the White House on 24 September, where Iran is expected to be a key topic, as it was during Trump's trip to Beijing in May.
Economic resilience and strain
Iran has long experience with Western sanctions and has developed methods to partially circumvent them, including expanding domestic production, using informal cross-border trade networks, purchasing restricted goods through third countries, and employing a shadow fleet to transport oil. "Iran's resistance capacity not only avoids collapse, it also prevents the economic pain from translating into the political pressure and changes that the US expects," said Hadi Kahalzadeh, an expert on Iran's economy at Brandeis University.
Yet the strain is mounting. The International Monetary Fund projects inflation in Iran will approach 70% by the end of the year, and the economy is expected to contract by more than 5%. While petrol remains cheap thanks to government subsidies, that may not last. A presidential aide told Iranian state television last week that the country now consumes more petrol than it produces, and Tehran might need to raise prices—a move that has sparked widespread protests in the past.
President Pezeshkian has said his government favours a negotiated end to the war. "What concerns us is people's livelihoods and their economic situation, and we are doing everything we can to deal with it," he told reporters last week.
Hardliners gain ground
But the most powerful force in Iran remains the elite Islamic Revolutionary Guard Corps (IRGC), which has grown stronger after withstanding US and Israeli airstrikes that killed Iran's top leaders in the war's opening salvos. The IRGC is pressing for greater concessions from the US, including Iranian control over Hormuz and financial compensation for the war. With negotiations stalled, Iran's hardliners believe their country can outlast the economic pressure.
Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, this month appointed a former IRGC commander to head the Supreme National Security Council, a signal that he favours the hard-line approach. As the standoff continues, the risk of further escalation remains high, with implications for global energy markets and regional stability.
