U.S. and Iran Move Toward Peace as U.S. Boosts Leverage with Economic Sanctions (Comprehensive)

"Full-Scale Launch of 'Economic Fury' Operation"
"Iran Considering Partial Opening of Hormuz"

Reuters Yonhap News

As the second round of talks between the United States and Iran is expected to take place, anticipation is growing for progress in negotiations. Observers believe that the two countries are getting closer to a basic agreement, and there are reports that Iran is considering the limited opening of the Strait of Hormuz. A short-term ceasefire between Israel and the Lebanese militant group Hezbollah is also expected. U.S. President Donald Trump predicted that a peace agreement could be reached as early as the end of this month. However, the United States has officially begun what is being called the "economic fury" operation, blocking exports of Iranian crude oil and freezing assets. This is analyzed as a strategy to increase U.S. leverage in peace negotiations with Iran.

Reuters Yonhap News

◆Second round schedule undecided= White House spokesperson Karoline Leavitt said at a briefing on the 15th (local time), "I have seen reports on the possibility of a face-to-face meeting, and while such discussions are ongoing, nothing is finalized until there is an official announcement." The day before, President Trump said that talks could take place two days later, but it appears that the schedule has not yet been confirmed. In a phone interview with a New York Post reporter, he said, "You really should stay there (in Islamabad, Pakistan) because something could happen within the next two days, and the likelihood of us going there has increased."

Spokesperson Leavitt also said, "(The meeting location) is very likely to be the same place as last time (Islamabad)." However, The Wall Street Journal (WSJ) reported, "Since Pakistani Prime Minister Shehbaz Sharif, a mediator in this war, is scheduled to visit Saudi Arabia, Qatar, and Türkiye until the 18th, the second round of negotiations is likely to take place after next week."

◆No plan to extend ceasefire…Trump says, "Deal by the end of this month"= While the negotiation schedule remains unclear, the White House stated that there are no plans to extend the ceasefire. Spokesperson Leavitt said, "There were some incorrect reports this morning that we had officially requested an extension of the ceasefire, but this is not true at this time. We remain very committed to negotiations and talks." The United States and Iran agreed to a two-week ceasefire on the 7th, which is set to end on the 21st.

However, there are expectations that the two countries will reach a basic agreement before the ceasefire expires, and some observers believe that an extension of the ceasefire will be inevitable to work out the details. On this day, U.S. political media outlet Axios cited two anonymous U.S. government officials, reporting that both sides are working to resolve remaining differences and reach a basic agreement before the ceasefire ends on the 21st, with mediation from Pakistan, Egypt, and Türkiye. On the 15th, a delegation led by Pakistan's Army Chief Asim Munir arrived in Tehran for talks with Iranian government officials.

A Pakistani government official expressed a cautious stance, saying, "We have to wait and see if an agreement will be reached. I am optimistic, and accordingly, we are continuing to put pressure on both sides." A U.S. government official and a source familiar with the mediation situation told the outlet that if a basic agreement is reached, the ceasefire will need to be extended to negotiate the details.

AFP Yonhap News

◆"Iran considering limited opening of Hormuz"...Possible Israel-Hezbollah ceasefire= There are also reports that Iran is considering opening the Omani side of the Strait of Hormuz. Reuters, citing Iranian government sources on the 15th (local time), reported that "there is a willingness to consider allowing ships to sail freely through the Omani waters without risk of attack." The source emphasized, "The success of this proposal depends on whether the United States is ready to accept Iran's demands, which is a key condition for resolving the Strait of Hormuz issue."

The possibility of a ceasefire between Israel and Hezbollah has also been raised. The Financial Times (FT), citing Lebanese officials, reported that a ceasefire could take effect as early as this week. This is likely to occur after Israeli ground forces take control of Bint Jbeil, a key stronghold in southern Lebanon. Israeli Prime Minister Benjamin Netanyahu stated that Israeli forces are continuing to strike Hezbollah in southern Lebanon and are reinforcing the so-called "security zone."

President Trump stated that the Iran war could reach a peace agreement by the end of this month. In a phone interview with the UK's Sky News on the same day, he was asked about the possibility of reaching an agreement with Iran before King Charles III of the United Kingdom pays a state visit to the United States. He replied, "It's possible. Very possible. They (Iran) have been hit pretty hard." King Charles III is scheduled to visit Washington, D.C., and New York from the 27th to the 30th, attending a state banquet at the White House and delivering a speech to the U.S. Congress.

◆Tougher economic sanctions...Pressure on China as well= As expectations for a peace settlement grow, the United States has increased the level of pressure to strengthen its negotiation leverage. In addition to blockading Iran's maritime routes, the U.S. has decided to initiate economic sanctions. U.S. Treasury Secretary Scott Bessent said at a White House briefing that "the general license for Iranian crude oil will not be renewed." This means that temporary licenses, which allowed sanctioned countries to purchase Iranian crude oil or petroleum products, will not be extended. As the recent Iran war caused fuel supply shortages in some countries, temporary licenses had been granted from the 20th of last month for 30 days. With these sanctions temporarily lifted, Iran exported crude oil to countries such as China and India to secure war funds.

This measure is expected to impact not only Iran but also China and other countries. Secretary Bessent stated, "China has purchased more than 90% of Iranian crude oil, which accounts for about 8% of China's energy demand. We believe China's purchases will stop." He added, "I can say that two Chinese banks have received letters from the Treasury Department, and if we can prove that Iranian funds have flowed into those bank accounts, we are prepared to impose secondary sanctions." This means that China, as a third party dealing with a specifically sanctioned entity like Iran, will also face sanctions. This strategy is aimed at indirectly pressuring China, which has an economic symbiotic relationship with Iran, to increase U.S. leverage in peace negotiations.

In addition, Secretary Bessent said that the U.S. plans to intensify efforts to track funds and freeze assets of key Iranian figures. He stated that Gulf Cooperation Council (GCC) member countries have been notified that "if companies or countries purchase Iranian crude oil or if Iranian funds are held in banks in those countries, we are prepared to impose secondary sanctions," emphasizing, "It will be a financial blow equivalent to what was witnessed in military operations."

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) imposed sanctions on Mohammad Hossein Shamkhani, the son of Ali Shamkhani, who served as both Secretary of Iran's Supreme National Security Council and military advisor to the Supreme Leader and was eliminated by the United States during the Iran war, as well as on his associates, companies, and ships. Secretary Bessent described this as "the largest single measure taken so far since the Trump administration resumed its maximum pressure campaign against Iran."

This content was produced with the assistance of AI translation services.