(Reuters) <\/p>\n\n\n\n
DUBAI\/CAIRO, Aug 29 – Iranian leaders are acknowledging the economic toll of war with the United \u200bStates, with the supreme leader calling on the government to address the hardship while the president reported foreign trade has shrunk \u200c35% due to the American sanctions and blockade.<\/p>\n\n\n\n
The warnings came even as other leaders threaten the U.S. with military retaliation and declarations that the Iranian navy maintains control of the Strait of Hormuz, the strategic waterway giving Iran leverage through its ability to disrupt global energy markets.<\/p>\n\n\n\n
With the war<\/a> now at the six-month mark, and negotiations at an impasse, President Donald \u200bTrump’s administration has stepped up efforts to punish Iran financially with what it has billed as an “economic D-Day.”<\/p>\n\n\n\n Washington has warned countries<\/a> to cut their \u200bbusiness ties with Iran or face secondary sanctions, though the Treasury Department stopped short of imposing penalties against major \u2060Iranian trade partners such as China and India, which could have repercussions for the U.S. and global economies.<\/p>\n\n\n\n The U.S. Treasury Department did impose sanctions on Egypt’s Banque \u200bMisr<\/a> for doing business with Tehran, proposing a rule that would cut off the bank’s branches in the United Arab Emirates from dollar transactions.<\/p>\n\n\n\n Egypt’s central bank \u200bsaid it and the foreign ministry were in contact with U.S. officials concerning the matter, adding the measure was limited to Banque Misr UAE\u2019s U.S. dollar transactions with correspondent banks only.<\/p>\n\n\n\n U.S. Treasury officials separately issued sanctions targeting one entity based in Hong Kong and one person linked to Iran’s Bank Melli, according to a notice posted on the department’s website.<\/p>\n\n\n\n The \u200bsanctions drive compounds the toll of the war on Iran’s economy<\/a>, where annual inflation hit 66% last month.<\/p>\n\n\n\n