Reasons behind Iran's economic struggles
The crisis between Iran and the United States is witnessing an expected military escalation, as the prospects for a political settlement diminish after the expiration of the 60-day deadline that previously allowed for such a resolution. Iran has threatened to escalate military actions, particularly in the Strait of Hormuz, in response to Washington's failure to implement the terms of the June agreement and the increasing economic pressure it faces, notably with a significant decline in oil exports. Iran is working to strengthen its military preparedness by reconstructing facilities and expanding its influence in the region, despite a faction within the regime warning of a potential economic collapse if sanctions continue. Washington is betting that sanctions will drain Iran's capacities, while Tehran is reordering its military priorities and warning of more aggressive options, with differing opinions within the two sides regarding the degree of escalation imposed.
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