GRANTS, N.M. – The latest Iran war update shows the conflict moving through economic pressure as much as direct fighting, with the United States targeting Iran’s revenue networks while Iran looks for ways to keep money moving and prepare for possible unrest at home.
According to the Institute for the Study of War and the Critical Threats Project, U.S. Treasury Secretary Scott Bessent announced “Operation Economic Outcast” on Aug. 24, aimed at cutting off financial options available to the Iranian regime. ISW-CTP reported that the U.S. Treasury Department sanctioned 60 entities, individuals and vessels tied to Iran’s efforts to obtain nuclear and missile technology, conduct cyber operations and generate oil revenue.
Iran’s Economy Under Pressure
According to ISW-CTP, these new U.S. economic measures come as Iran’s economy continues to deteriorate. The Iranian rial fell to a record low of 2.02 million rials to one U.S. dollar on Aug. 24, and inflation has reached about 66 percent. ISW-CTP reported that the U.S. naval blockade, foreign currency shortages and reduced export revenue are putting heavy pressure on Iran’s population, including security forces paid by the government.
Iranian officials are trying to project stability. According to ISW-CTP, Iran’s central bank governor said “hardship is not the same as collapse,” while also previously acknowledging foreign currency reserve shortages and high reconstruction costs ISW-CTP reported that Iran is seeking alternative land routes and economic ties, including with Iraq, to keep petroleum exports moving despite the blockade.
Threats and Unrest Concerns
According to ISW-CTP, Iran is also preparing for possible social unrest. Iranian security institutions in Tehran Province announced an internal security exercise called “Janfada,” or self-sacrifice, involving 313,000 personnel. ISW-CTP assessed that the exercise likely serves to show the regime’s ability to mobilize and suppress unrest.
Iranian officials are also threatening foreign states that comply with U.S. sanctions. According to ISWCTP, Iranian Supreme National Security Council Secretary Mohsen Rezaei threatened to designate any country that follows U.S. sanctions as an enemy. An outlet tied to the Supreme Leader’s office also warned of possible retaliatory attacks against such states.
In Iraq, according to ISW-CTP, the government and some Iranian-backed militias may be working toward an agreement that would integrate militia fighters and weapons into recognized Popular Mobilization Forces units. ISW-CTP cautioned that this could allow Iranian-backed militias operating outside the state to move weapons into a PMF structure already influenced by Iran.
In Lebanon, ISW-CTP reported that Israeli military sources identified “significant gaps” in Lebanese Armed Forces efforts to secure pilot zones in southern Lebanon. The issue is whether Lebanese forces have the authority and willingness to search private property where Hezbollah may hide weapons. ISWCTP assessed that disarming Hezbollah in those areas will likely fail without that authority.
Red Sea Shipping Threat
The Red Sea remains a major concern. According to ISW-CTP, the Houthis struck the Saudi oil tanker AMZAN near Yanbu, Saudi Arabia, on Aug. 24. ISWCTP reported that the strike was part of the Houthi effort to enforce its blockade on Saudi Arabia and raise economic pressure on Saudi
leaders.
Direct U.S.-Iran fighting may not dominate every update, but the conflict remains active and dangerous. The outcome will affect U.S. service members, global energy markets, shipping costs and the stability of several countries tied to the war.
In Remembrance
The following 17 U.S. service members have been publicly identified as having died in service to our nation during the current conflict. The Cibola County community honors their sacrifice and holds their loved ones, friends, and fellow service members in our thoughts.
Port of Shuaiba, Kuwait — March 1, 2026 Maj. Jeffrey O’Brien Capt. Cody Khork Chief Warrant Officer 3 Robert Marzan Master Sgt. Nicole Amor Sgt. 1st Class Noah Tietjens Sgt. Declan Coady
Prince Sultan Air Base, Saudi Arabia — March 1, 2026 Sgt. Benjamin N. Pennington
Western Iraq — March 12, 2026 Maj. John A. Klinner Capt. Ariana G. Savino Tech. Sgt. Ashley B. Pruitt Capt. Seth R. Koval Capt. Curtis J. Angst Tech. Sgt. Tyler H. Simmons
Muwaffaq Salti Air Base, Jordan — July 17, 2026 1st Lt. Tyler James Feehan Pvt. Isabella Gonzales Sgt Angel S Rampersand
Erbil Air Base, Iraq — July 19, 2026 Sgt. Michael Emmanuel Swinton