Vice President JD Vance said the Iran war is entering a "new phase" centered on economic pressure after months of U.S. strikes on military and weapons targets, while President Donald Trump said Iran was not ready for the "right deal" and announced an economic campaign of unprecedented scale. Washington says financial measures are intended to change Tehran's calculus and force an agreement, but negotiations have collapsed and no talks are underway. Traffic through the Strait of Hormuz remains about 90% below prewar levels, according to the UK Maritime Trade Operations, despite a June memorandum of understanding to halt hostilities and restore shipping. Iran's Foreign Minister Abbas Araghchi said on X that the newly threatened U.S. sanctions are "bound to fail," citing the collapse of prior "most crippling," "maximum pressure," and "unconditional surrender" campaigns, while Iranian officials vowed broad retaliation. China, which bought more than 80% of Iran's shipped oil in 2025, is seen as able to absorb additional strain.