Trump Claims Iran Financial Collapse as Strait of Hormuz Crisis Deepens

U.S. President Donald Trump ignited fresh global concern after posting on Truth Social that Iran’s economy is in free fall, claiming the country is “starving for cash” and urgently pushing to reopen the strategically critical Strait of Hormuz.

Trump alleged Iran is losing $500 million per day, with military and police forces reportedly going unpaid, an explosive claim that comes at a delicate moment in the ongoing Middle East conflict.

In his post, Trump painted a dire picture of Iran’s internal stability, suggesting economic pressure is forcing Tehran to seek immediate relief through reopening the Strait of Hormuz, a vital artery for global oil shipments.

"Iran is collapsing financially! They want the Strait of Hormuz opened immediately. Starving for cash! Losing 500 Million Dollars a day. Military and Police complaining that they are not getting paid. SOS!"

The strait, located between Iran and Oman, handles roughly a fifth of the world’s oil trade. Its near closure during the conflict has already rattled markets, sending oil prices sharply higher and raising fears of a global recession.

Trump’s assertion, however, has not been independently verified, and Iranian officials have historically downplayed the impact of sanctions and blockades.

Earlier, Trump announced an indefinite extension of the ceasefire with Iran, saying the U.S. agreed to a request from Pakistani mediators to allow more time for negotiations. Talks hosted in Islamabad by the government of Pakistan aim to end a war that has killed thousands and destabilized the global economy.

Yet the announcement raised immediate questions: Iran has not publicly confirmed requesting a ceasefire extension; Israel, led by Benjamin Netanyahu, has not clearly endorsed it; and U.S. officials signaled internal disagreements on next steps. Iranian reactions have been cautious to dismissive, with the Islamic Revolutionary Guard Corps-linked Tasnim News Agency rejecting Trump’s claims and warning of forceful resistance to U.S. actions.

Despite signaling openness to peace talks, Trump reaffirmed that the U.S. Navy blockade of Iranian trade would remain in place, an action Iran considers an act of war. Recent incidents include the seizure of Iranian commercial vessels, Iranian accusations of “piracy” and “state terrorism,” and threats from Tehran to break the blockade by force.

The conflict, which began on February 28 with U.S. and Israeli airstrikes, has expanded across the region, with over 5,000 civilians killed and hundreds of thousands displaced. Fighting has spread to Lebanon via Hezbollah involvement.

Trump also claimed Iran’s government is “seriously fractured,” referencing the assassination of key leaders, including former Supreme Leader Ali Khamenei. His successor, his son, now faces mounting pressure amid economic collapse concerns, military strain, and growing public unrest. However, independent confirmation of internal instability remains limited.

Efforts to negotiate peace appear increasingly fragile. U.S. Vice President JD Vance has delayed travel to Pakistan, Iran demands an end to U.S. “pressure tactics,” and no agreement emerged from earlier negotiation rounds. Meanwhile, António Guterres has condemned threats against civilian infrastructure, warning of violations of international humanitarian law.

A key sticking point in talks is Iran’s stockpile of enriched uranium. Trump has demanded removal of nuclear materials to prevent weaponization, while Iran insists its program is peaceful and protected under international agreements.