Iran can close the Strait of Hormuz in the Persian Gulf if ordered by senior officials, the commander of the Revolutionary Guards (IRGC) navy warned after US President Donald Trump announced plans to cut Iran’s oil exports to zero.
"We have the capability to close the Strait of Hormuz," Alireza Tangsiri was quoted as saying by Iranian media on Sunday in defiance against Trump's threats.
Tangsiri added that the decision rests with "high-ranking officials, and the IRGC navy will act in accordance with orders."
On Tuesday, Trump signed a directive aiming to reduce Iran's oil exports to zero in a bid to pressure Tehran back to the nuclear negotiating table, and reimpose stringent economic sanctions.
He said that Iran would face "catastrophic" consequences if it does not negotiate a new nuclear agreement.
However, Tangsiri dismissed Trump's directive, saying the US is incapable of reducing Iran’s oil exports to zero.
"They cannot achieve their goals. We have stood against them for 46 years, and they cannot break the Muslims. Look at Gaza—Muslims, with empty hands, have resisted and defended themselves against the ruthless, child-killing, and bloodthirsty regime for over 15 months. So, they certainly cannot break a bigger country with sanctions. The more they have sanctioned us, the greater achievements we have made," he said.
The strait, a key route for global oil shipments, has been at the center of past tensions. Iran has repeatedly threatened to block it, including in 2018 after the US withdrew from the nuclear deal.
Tangsiri made a similar threat in April last year, saying Israel's presence in the United Arab Emirates was viewed as a threat by Tehran and that Iran could close the Strait of Hormuz if deemed necessary.
Western nations have stationed naval forces in the region to prevent any disruption to the vital waterway, which handles about 20% of global oil trade.
In 2023, the US imported approximately 0.5 million barrels per day of crude oil and condensate from Persian Gulf nations through the Strait of Hormuz, accounting for about 8% of its total crude and condensate imports and 2% of its overall petroleum liquids consumption, according to the US Energy Information Administration (EIA).
Trump withdrew from the 2015 JCPOA nuclear deal with Iran during his first term, imposing tough economic sanctions that have triggered a prolonged financial crisis in the country.
In spite of this, under the Biden administration, oil sales have continued to grow.
Gholamreza Nouri Qeziljeh, Iran’s Minister of Agriculture, attributed some of the price increases to sanctions, which targeted the country's kiwi crop.
However, he acknowledged that the same kiwis are being exported this year, and this has further inflated their cost on the domestic market.
"We need to examine how to reform this process," he said, suggesting that the government may need to take action to prevent further price surges.
Kiwis are now being sold for up to 2,400,000 rials ($2.7) per kilogram, a price that eats up nearly two percent of the average monthly salary.
Tasnim News, a media outlet linked to Iran’s Revolutionary Guards, reported on Saturday that, based on field observations, kiwi prices in Tehran range from $1 to $2.7 per kilogram.
Prior to the increase, the ILNA news agency warned that the purchasing power of Iranian workers has plummeted by a quarter this year, compared to the last decade.
The kiwi price hikes come on the heels of similar price increases for potatoes. Reports indicate that potatoes in Iran have risen to 900,000 rials per kilogram (around $1), spurred in part by extensive exports.
Mehrdad Lahoti, a member of the Iranian parliament, said that while Iran once exported over one million tons of potatoes, poor management has now led to rotting stockpiles in warehouses. "Iran has become an importer of this product," Lahoti said.
To stabilize soaring potato prices, Iran is importing 50,000 tons of the staple vegetable, according to deputy agricultural minister Akbar Fat’hi.
Further complicating the issue, a review of customs data reveals that Iran exported 307,000 tons of potatoes in the first nine months of the year at a price of just 140,000 rials (15 cents) per kilogram, with much of it going to Iraq and Afghanistan.
In neighboring Iraq, Iranian agricultural exports are also causing economic strain. Iraqi tomato farmers in Basra have been dealing with price crashes due to the influx of cheaper Iranian tomatoes, which often flood the local markets.
According to Al Jazeera, farmers in Basra struggle to cover their production costs as tomatoes imported from Iran undercut local prices.
Back in Iran, political leaders are offering mixed explanations for the rising prices. President Masoud Pezeshkian argued that external sanctions are driving up costs.
"The enemies think that if they siege us, we will die from hunger," he said on Saturday.
Morteza Fazaeli, a member of Supreme Leader Ali Khamenei’s office, said on Saturday that domestic mismanagement is a key factor in the country’s economic woes.
With food prices continuing to rise and the purchasing power of citizens steadily declining, many Iranians are increasingly confronted with a difficult economic reality as the rial loses value by the hour, now being exchanged at 900,000 per dollar.