US military action may be needed to reopen Hormuz, Senator Graham says

US Treasury Secretary Scott Bessent accused IRGC leaders of trying to funnel money into offshore accounts while ordinary Iranians are being pushed into cross-border trade for basic goods, pointing to a New York Times report on Iranians carrying cooking oil from Turkey into Iran.

“I am amazed that the IRGC has forced the invention of a completely new type of oil trading – in cooking oil,” Bessent wrote on X.

He said the Islamic Republic’s “colossal economic mismanagement” had forced Iranians “to barter to feed their families, and to become dependent on their neighbors,” while IRGC leaders tried to move more money offshore.

The New York Times reported from the Kapikoy crossing on Turkey’s border with Iran that Iranians have been buying bottles of olive, sunflower and corn oil in Turkey to resell inside Iran or use at home, as prices for basic goods surge.

The report said demand for cooking oil at the border had risen in recent days, turning a basic household product into a small cross-border trade amid Iran’s inflation crisis, layoffs, war disruption and internet shutdown.

The newspaper added that the Kapikoy crossing has become one of the few durable links between Iranians and the outside world during the war, as air travel was disrupted for much of the past two months and the government-imposed internet blackout continues.

The pressure on households has intensified after Iran removed subsidies on imports of some essential goods in January, a move that pushed up cooking oil prices. The government later offered direct monthly cash payments of about 10 million rials, or around $7, but economists cited in the report said that was unlikely to meaningfully ease the burden.

Bessent said that under President Donald Trump, the United States was committed to supporting “the freedom and dignity of the Iranian people after 47 years of corruption.”

Iranian Foreign Minister Abbas Araghchi was in Islamabad on Saturday, where he met Pakistani Prime Minister Shehbaz Sharif and army chief Asim Munir as Pakistan continued efforts to mediate between Tehran and Washington.

A Pakistani source involved in the talks told Reuters that Araghchi conveyed Tehran’s demands and concerns about US positions during the visit. Iranian state media also said he delivered Iran’s response to proposals in a meeting with Munir before leaving Islamabad for Oman and Russia.

Iranian officials had earlier said Araghchi had no plan to meet US officials in Pakistan.

Lake, a journalist at The Free Press and host of the Breaking History podcast, told Eye for Iran that the Islamic Republic is seeking negotiations as a lifeline after major military, economic and political setbacks.

“Their backs are against the wall and these negotiations they hope are going to be a lifeline,” Lake said.

But he argued that any renewed diplomatic track should begin with pressure on Tehran over the Iranian people.

“If I was Vice President Vance, I would say… the first thing I’d say is, you need to turn back on the internet if you’re going to get these financial lifelines. You need to release political prisoners,” Lake said.

He added that Washington should also demand an end to executions.

The remarks come as Iran’s internet blackout has entered its 57th day, according to NetBlocks, with international connectivity still largely severed amid worsening conditions inside the country.

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Lake said the US should recognize that “our best allies are the Iranian people on the ground,” and warned against strikes on civilian infrastructure such as power plants, saying they would hurt ordinary Iranians more than the Islamic Republic.

The diplomatic maneuvering has also unfolded amid signs of deepening disagreement inside Tehran. Mohammad Bagher Ghalibaf, the parliament speaker, has stepped down as head of Iran’s negotiating team amid internal disputes, with Saeed Jalili floated as a possible replacement and Araghchi seeking greater control of the talks.

Lake said he believes the fractures inside the Islamic Republic are genuine.

“At the end of the day, with enough pressure, they’re probably going to start turning on each other,” he said.

He argued that the Islamic Republic has lost legitimacy and that Iran’s future will ultimately be decided by Iranians themselves.

“You cannot keep these people down,” Lake said..

Iran’s foreign minister said Tehran had shared its position on a “workable framework to permanently end the war on Iran” during talks in Pakistan, while questioning whether the United States was serious about diplomacy.

In a post on X after leaving Islamabad, Abbas Araghchi described his visit as “very fruitful” and praised Pakistan’s “good offices and brotherly efforts” to restore peace to the region.

“Have yet to see if the US is truly serious about diplomacy,” he added.

Araghchi’s remarks came after meetings in Islamabad with Pakistani Prime Minister Shehbaz Sharif and army chief Asim Munir, as Pakistan continued efforts to mediate between Tehran and Washington.

After leaving Pakistan, Araghchi arrived in Oman’s capital, Muscat.

Donald Trump later said he had canceled the planned trip by US negotiators to Pakistan, leaving the next step in the diplomatic track unclear.

US President Donald Trump said he had canceled the planned trip of his representatives to Islamabad for talks with Iran, saying too much time would have been wasted on travel and saying there was deep infighting and confusion within Iran’s leadership.

In a post on Truth Social, Trump also said the United States held the upper hand and suggested Tehran could still initiate contact if it wanted talks, writing: “If they want to talk, all they have to do is call.”

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Donald Trump canceled a planned trip by US negotiators to Pakistan for talks on Iran, Fox News reported.

The report adds fresh uncertainty to diplomacy that had already appeared in doubt after Iranian Foreign Minister Abbas Araghchi left Islamabad on Saturday following meetings with Pakistani officials, before any US-Iran session was confirmed.

Iran had also said Araghchi had no plan to meet US officials in Pakistan.