Trump calls Iran a 'failed nation' as oil exports collapse

US President Donald Trump said Sunday that Iran is facing worsening economic crises, noting that the country is suffering from "hyperinflation" and a collapse of its currency and oil exports.

In posts on his Truth Social account, Trump wrote that "oil flow through Hormuz has returned to normal," adding: "Goodbye Kharg Island."

The US president also described Iran as a "failed nation" in a series of posts addressing the country's economic and oil sector developments.

Iran's oil exports through the Strait of Hormuz have dropped to unprecedented lows after large crude shipments to China halted for nearly seven weeks, putting increasing pressure on one of Tehran's main sources of foreign currency revenue.

According to data from Kpler, Vortexa, and TankerTrackers.com, Iran has been unable to export oil shipments to China via the Strait of Hormuz since the US reimposed its blockade on July 14, as part of a six-month-long standoff.

This marks a significant shift compared to previous sanctions periods, when some Iranian oil continued to pass through the strait even during the peak of the US "maximum pressure" campaign in 2019 and 2020.

The International Monetary Fund estimates Iran's inflation rate at around 70% this year, the third highest in the world after Venezuela and Sudan.

Washington increased pressure last week by threatening immediate sanctions on countries that do not halt trade with Iran.

Empty tankers are struggling to return to Iranian ports due to the blockade, leaving them idle at sea. According to Jongman, 27 sanctioned tankers linked to Iranian oil trade are currently waiting off the coast of Sri Lanka, unable to return to Iran.

On the currency market, the Iranian rial recorded a new drop against foreign currencies, with the US dollar surpassing 228,000 tomans on the open market.

This collapse came just one day after the governor of Iran's central bank denied there was a severe shortage of foreign currency needed for imports.

The central bank governor attributed the sharp decline in the local currency to increased reserve demand and capital flight from the country.