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Iran Returns to ‘Diplomacy’ Talk as Economy Collapses

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Iranian Foreign Minister Abbas Araghchi said on Friday that he had “creative discussions” with the leader of Qatar and “putting diplomacy back on track isn’t impossible” — a noticeable change in tune from Iran’s previous belligerence as the Iranian economy begins to collapse under the weight of U.S. sanctions.

“Putting diplomacy back on track isn’t impossible. It hinges on U.S. understanding of one simple fact: pressure doesn’t work. The U.S. should build trust, speak respectfully, acknowledge our rights, and uphold commitments,” Araghchi wrote on X.

The Iranian foreign ministry was insisting prior to these statements this month that it had no desire to resume contacts with the United States and the only item on its diplomatic agenda was bilateral negotiations with Oman to seize permanent control of the Strait of Hormuz.

The Omanis never seemed to get around to signing on the dotted line for Iran’s scheme to control the strait and extort “fees” from international shipping. On Friday, U.S. Central Command (CENTCOM) chief Admiral Bradley Cooper made a surprise announcement that the U.S. Navy has cleansed all of Iran’s mines from the strait, leaving American forces in undisputed control of the vital waterway.

“The circumstances were challenging and dangerous, to say the least, but we got the job done,” Cooper said. “Bottom line: today, international shipping lanes are open, and momentum is building.”

Cooper said the U.S. has now escorted almost 1,500 commercial vessels through the Strait of Hormuz, carrying some 750 million barrels of crude oil between them, while Iran has exported “zero oil from its shores” since the U.S. blockade was reimposed in mid-July.

“No ships have entered or left an Iranian port without our permission, and we have only allowed ships to pass through on humanitarian grounds,” he said.

Iranian leaders seemed increasingly apprehensive about Operation Economic Outcast, the sanctions to isolate Tehran that were announced by President Donald Trump and U.S. Treasury Secretary Scott Bessent this week.

On Friday, the Iranian Foreign Ministry published a lengthy statement denouncing Operation Economic Outcast and threatening unspecified retaliation against countries that stop doing business with Iran.

“U.S. economic sanctions against Iran, regardless of their nomenclature, are entirely unlawful and unjustifiable measures that violate the United Nations Charter, international humanitarian law, and human rights. All states are accordingly obliged to refrain from implementing such sanctions,” the Iranian statement fumed. “Furthermore, all states are obligated to refrain from recognizing or endorsing the situations or effects arising from these unlawful measures.”

“Participation in the implementation of unilateral U.S. sanctions against Iran amounts to complicity in the imposition of one State’s unlawful will upon independent states and the disruption of their legitimate economic and trade relations. This would constitute complicity in undermining the most fundamental principle of the U.N. Charter, namely respect for the sovereign equality of states,” the statement continued.

Its neighbors might have received Iran’s pleas better if Iran had not spent the past few months launching missiles and drones at them. The United Arab Emirates (UAE) suspended all trade and financial transactions with Iran on August 19 after Iran’s latest missile attack, depriving Tehran of one of its most important routes for evading sanctions.

The biggest potential weakness in Operation Economic Outcast is China. The Trump administration has said China would not be exempt from sanctions if it continues to deal with Iran, but it remains to be seen if Iran’s biggest trade partner will back down.

On Friday, Iranian parliamentary speaker Mohammad Bagher Ghalibaf praised Beijing for at least rhetorically rejecting U.S. sanctions.

“The Iran-China comprehensive strategic partnership is rooted in mutual respect, win-win cooperation, and a shared vision for a multipolar world. This relationship needs no one’s permission,” Ghalibaf declared.

Deutsche Welle (DW) on Thursday noted that U.S. sanctions against China have so far focused on small financial entities and individuals, rather than the big Chinese banks. This leaves room for further escalation, possibly after two major upcoming events: Iranian President Masoud Pezeshkian’s visit to the Shanghai Cooperation Organization (SCO) summit in Kyrgyzstan next week; and President Donald Trump’s meeting with Chinese dictator Xi Jinping on September 24.

International Crisis Group senior analyst William Yang told DW that China views Iran as important, but possibly “not irreplaceable,” especially if Iranian mischief interferes with American efforts to stabilize the Middle East — a stability China is happy to exploit for its own benefit.

On the other hand, University of Bonn political scientist Gu Xuewu said China is determined not to “yield to US pressure to sever economic and trade ties with Iran, or to help the U.S. maintain its presence in the Middle East.”

“China disapproves of the U.S.’ assertive behavior in this region and is even less willing to accept the U.S. using every means at its disposal to hinder cooperation between Arab states and China in the areas of energy, the military, science, technology, and trade,” Gu said.

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