21 August,2026 11:24 AM IST | Washington | mid-day online correspondent
US Vice President JD Vance. File Pic/AFP
US Vice President JD Vance has described economic pressure as Washington's "most effective tool" against Iran, while acknowledging that using sanctions and other economic measures carries risks for the US as well.
Speaking on the Clay Travis and Buck Sexton Show, Vance said Washington could use economic pressure to influence Tehran's decisions but called the approach a "delicate dance" because Iran could respond with measures affecting the US economy.
"The most effective tool that we have is the economic pressure we can apply to them. And this is a delicate dance, because we apply economic pressure to them, they're going to try to apply economic pressure to us," Vance said, according to CNN.
"What has been true over the last couple of weeks is they have felt a lot more pressure than we have," he added.
Vance acknowledged that oil prices had risen but said the administration was working to maintain energy supplies through the Strait of Hormuz, a key route for global oil and gas shipments.
"Obviously oil prices are elevated, which people see at the pump," he said, as reported by CNN.
"They are trying to close the Strait down, and if we can, you know, not even get it back to where it was before, but if we can get enough oil and gas out to give some Americans some ease at the pump, some ease on energy prices," Vance added.
Vance also said economic pressure linked to attacks on commercial vessels could affect Iran's calculations over any potential agreement with Washington.
"Meanwhile, the Iranians are punished for shooting at commercial ships. That just applies a lot of economic pressure to them, and that changes their calculus for you know what kind of a deal they want to make," Vance said.
Vance said the broader objective of US policy was to prevent Iran from rebuilding its nuclear capabilities.
"What we are trying to do is create a changed reality on the ground, where not just we can say with confidence their facilities have been destroyed; we can also say with confidence they're never going to try to rebuild, and that's the phase that we're in now," he said, according to CNN.
His comments came amid heightened tensions between Washington and Tehran following the US announcement of new sanctions targeting Iran.
Iran's Foreign Ministry has condemned the latest US economic and trade sanctions, describing them as "economic terrorism" and "crimes against humanity".
In a statement issued on Thursday, the ministry said the sanctions were "another indication of the continuation of 73 years of hostility and animosity by US policymakers toward the Iranian people."
"The US economic sanctions against Iran, which target the fundamental human rights of every Iranian citizen, constitute 'economic terrorism' and 'crimes against humanity'," the statement said.
Iran accused Washington of pursuing a policy that had already failed and said the latest measures would not affect its determination to protect its independence and national sovereignty.
"Economic sanctions and pressure are the other side of the same coin as war and military aggression," the Iranian Foreign Ministry said.
The ministry also said the US government and those responsible for the policy would bear responsibility for the consequences of the sanctions.
"The Islamic Republic of Iran remains steadfast and determined in defending its security and national interests and confronting the US military, economic, political and psychological pressures and attacks," it added.
The Iranian statement followed US President Donald Trump's announcement of what he described as the "most crushing economic operation ever taken" against Iran.
Trump warned countries providing financial, business or government support to Tehran that they could face "tremendous economic consequences".
"No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it," Trump said in a post on Truth Social.
"Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale," he added.
Trump said the measures would target what he described as Iran's economic lifelines, including oil smuggling networks, financial transfers, exchange houses, ship registries and front companies.
"Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies -- It all needs to stop NOW," Trump said.
He also warned that countries allowing their financial institutions, businesses, airports or government entities to support Iran would face "tremendous economic consequences."
The latest developments have unfolded amid continuing tensions over the Strait of Hormuz, one of the world's most important energy transit routes.
Trump had earlier claimed that the waterway remained open and that the US naval blockade had been effective.
"Right now the Strait is open. A lot of boats are coming through," Trump said, adding that "the naval blockade has been extremely effective" and "100 per cent successful."
Trump also reiterated his position that Iran would not be allowed to acquire nuclear weapons.
"IRAN WILL NEVER HAVE A NUCLEAR WEAPON."
Iranian Foreign Minister Seyed Abbas Araghchi criticised Trump's announcement of an "Economic D-Day", arguing that it diverted attention from economic problems in the US.
"The so-called 'Economic D-Day' is a diversion from America's own crisis: unprecedented debt and surging interest costs," Araghchi said in a post on X.
"Doubling down on failed policies will only bring further defeat -- and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide," he added.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf had earlier said Tehran would not reopen the Strait of Hormuz until the United States fulfilled commitments under a 14-point Memorandum of Understanding.
(With inputs from ANI)
