Iranian Foreign Minister Mohammad Javad zarif claimed that his country was making “tentative progress” with its European partners vis a vis the nuclear agreement. At a meeting with Iranian ambassadors and businessmen, the Iranian top diplomat suggested, however, that the United States was pushing its own agenda, which raises questions about Europe’s ability to adhere to the nuclear deal – which sought to limit Tehran’s nuclear program in exchange for the removal of international sanctions that have crippled the Islamic Republic’s economy. Zarif further claimed that “the U.S. feels isolated despite all its political and economic power.” Despite Iran’s attempts to brush-off American demands for a new agreement, its economy continues to deteriorate with the Islamic Republic’s currency hitting a new record low, dropping past 110,000 rials to the U.S. dollars – effectively losing half of its value since the month of April. The Iranian central bank blamed “enemies” for the fall of the currency and a rapid rise in the prices of gold coins, while the country’s judiciary announced the arrest of 29 people on charges related to “economic disruption” that carries the death penalty.
Meanwhile, growing concerns in the wake of attacks on Saudi oil-tankers by Iranian-backed Houthi rebels, and increasing verbal threats made by Iranian officials against shipping in the Persian Gulf, prompted the Trump Administration to look into possible military options that will assure the freedom of movement on vital maritime shipping lanes. Iran threatened to block all of its competitor’s oil exports in the Gulf if the United States would follow through on re-imposing sanctions, voicing specific threats regarding shipping through the choke point at the Strait of Hormuz, which is internationally perceived as a vital oil transport route. US officials emphasized that if any military action will take place, it would be carried out by America’s allies in the region, such as the Saudis, and not by U.S. forces. The officials further noted that any long-term military effort would require the involvement of other nations.