Iran's trade shrinks 35 per cent while the US Navy shifts payroll money to fund the war
President Masoud Pezeshkian said US sanctions and a naval blockade had cut Iran's exports and imports by nearly 35 per cent, and the government made curbing inflation and keeping control of the Strait of Hormuz central tasks. Ayatollah Mojtaba Khamenei told ministers to address prices and unemployment. Pentagon documents reported by The Defense Post show the US Navy shifting payroll money and reporting 35.7 billion dollars in war costs.
Geopolitics··Evening
Pezeshkian says trade has shrunk 35 per cent
President Masoud Pezeshkian told state media that US sanctions and a naval blockade had cut Iran's exports and imports by nearly 35 per cent. The government said curbing inflation, creating jobs and gradually reducing dependence on the dollar were now central tasks, and said Tehran would keep pursuing diplomacy while maintaining what it describes as control of the Strait of Hormuz. Pezeshkian said Iran had still sold about 90 million barrels of oil during the short-lived memorandum of understanding signed with Washington in June, when sales were briefly permitted. The war began on 28 February and passed its six-month mark this week. The government statement shows Tehran acknowledging economic strain while insisting it will hold its military-diplomatic position at the strait. Pezeshkian's statement shows Tehran acknowledging economic strain while insisting it will hold its position at the strait. The Associated Press reported separately that Iran's leadership has consolidated around military commanders and clerics long established in the ruling system, and that Mohsen Rezaei, the new secretary of the Supreme National Security Council, said last weekend that Iran would retaliate in a seismic manner and halt Gulf oil exports if the economic pressure continued.[1]
Khamenei sends a warning without appearing in public
Supreme Leader Ayatollah Mojtaba Khamenei, who has not appeared in public since the war began on February 28, told ministers in a written statement to address inflation, unemployment and prices. Mohsen Rezaei, the new secretary of the Supreme National Security Council, said last weekend that Iran would retaliate in a seismic manner and halt Gulf oil exports if the economic pressure continued. The Associated Press reported that Iran's leadership has consolidated around military commanders and clerics long established in the ruling system. Khamenei's absence from public view keeps questions about leadership visibility on the table since the war began. Rezaei's threat to halt oil exports shows a harder response line is being discussed alongside Pezeshkian's diplomacy pledge. Rezaei's threat to halt oil exports shows a harder response line is also being discussed. The Associated Press reported that Iran's leadership has consolidated around military commanders and clerics. Pezeshkian said Iran had still sold about 90 million barrels of oil during the short-lived memorandum of understanding signed with Washington in June, when sales were briefly permitted.[1]
The US Navy shifts accounts to fund the off-budget war
The US Navy is shifting money out of payroll and other accounts to sustain operations against Iran, according to Pentagon documents and interviews reported by The Defense Post. Officials told Congress in July that the fighting had already cost $35.7bn and warned that without extra funding the service could scale back exercises and routine missions. Navy officials and a contractor said the strain has delayed some non-emergency maintenance at shore facilities. The service disputed that its operations and maintenance accounts had run out of money and said it is managing resources to meet pay obligations on time. Since February the Navy has helped conduct strikes and enforce a naval blockade around the Strait of Hormuz, pushing up spending on personnel and operations. The war began in February and was not built into the Navy's budget of nearly $300bn for this year. The Navy warned it could scale back exercises and routine missions without extra funding.[2]
