Former Labour minister Bill Rammell has hit out at Donald Trump’s latest economic offensive against Iran, claiming the US President “doesn’t know where he is going” with the conflict.

Mr Rammell said the latest sanctions were unlikely to force Tehran into submission because Iran still has significant leverage over global energy markets through its oil exports and control of the Strait of Hormuz.

His comments came after the Trump administration announced a sweeping new round of sanctions designed to cut Iran off from international trade and target the financial and economic networks supporting Tehran.

The US Treasury has described the campaign as an effort to “sever every economic lifeline” sustaining the Iranian government, with the latest measures targeting dozens of Iran-linked entities, individuals and vessels.

But speaking to GB News, Mr Rammell questioned whether the strategy would work.

“I don’t think Trump knows where he’s going with this conflict,” he said.

He pointed to the impact the continuing conflict was already having on British motorists, saying he had paid 162p per litre for petrol compared with 135p at the start of the conflict.

Mr Rammell also argued that the sanctions could have limited impact because of Iran’s relationship with China.

“I was reading that the guy from Capital Economics said it’s going to be a damp squib, in part because Iran exports 90 per cent of its oil to China, who have always completely ignored international sanctions,” he said.

China is Iran’s largest oil customer, with Chinese purchases accounting for roughly 90 per cent of Iran’s exported oil, according to the US-China Economic and Security Review Commission.

Recent Reuters reporting has also highlighted the importance of Chinese demand to Iran’s oil trade, with shipments continuing despite years of US sanctions and renewed American pressure.

Mr Rammell said Iran’s ability to disrupt shipping through the Strait of Hormuz meant the economic consequences of the conflict could extend far beyond the two countries.

“The Iranians have demonstrated they’ve got a hold on the global economy through the Strait of Hormuz,” he said.

The waterway is one of the world’s most important energy routes. The International Energy Agency says it is the primary export route for oil produced by several major Gulf producers, with the bulk of the oil travelling through the strait heading to Asian markets.

The latest US measures come amid continued disruption around the waterway. Maritime traffic has fallen sharply, with the Financial Times reporting that only around 16 vessels a day were transiting the strait compared with more than 130 before the conflict.

Mr Rammell argued that economic pressure alone was unlikely to resolve the standoff and called for a return to negotiations.

“The only solution is a negotiated solution and we’ve got to get back to it,” he said.