US President Donald Trump has threatened to impose what he described as the “most crushing economic operation ever taken against any country” on Iran, warning nations and businesses that help Tehran evade sanctions of severe financial consequences.
In a post on Truth Social on Thursday, Trump said the campaign would amount to “Economic Warfare and Isolation on an unprecedented scale,” as his administration intensifies efforts to cut off Iran’s access to international finance and trade.
“No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me,” Trump said, adding that “TRAGICALLY, for them, they have failed to take it.”
Trump claimed Iran’s navy, air force and military production facilities had been destroyed and that the country’s currency had been rendered worthless, arguing that the Iranian regime was “hanging by a thread.”
He warned that any country whose financial institutions, businesses, airports or government entities provide Iran with what he called a “lifeline” would face “tremendous economic consequences” of their own.
Trump specifically ordered an immediate crackdown on channels including oil smuggling, currency swap lines, cash transfers, exchange houses, ship registries and front companies, while reiterating that Iran would never be allowed to acquire a nuclear weapon.
The move expands a pressure campaign launched by the Trump administration in April under the banner of Operation Economic Fury, targeting what Washington describes as Iran’s global terrorism financing networks and revenue streams.
Iranian Foreign Minister Seyed Abbas Araghchi rejected Trump’s threat of what he described as “Economic D-Day,” accusing Washington of using pressure on Tehran to divert attention from its own economic challenges, including mounting debt and rising interest costs.
“Doubling down on failed policies will only bring further defeat—and enmity of Iranians,” Araghchi said in a post on X on Thursday.
He also accused the United States of pursuing “economic terrorism,” warning that the campaign could threaten the broader global economy and the sovereignty of countries beyond Iran.
Araghchi has previously accused Washington of repeatedly escalating sanctions after earlier measures failed to alter Tehran’s position, arguing that the strategy has become an obstacle to reaching a negotiated settlement to the six-month conflict.
UAE Suspends Trade With Iran
The latest escalation came a day after the United Arab Emirates, one of Iran’s most important commercial partners, suspended trade and financial dealings with Tehran.
The UAE took the decision after accusing Iran of firing two ballistic missiles at the Gulf state. Tehran denied launching the missiles and described the allegation as a “false flag” operation.
Before the war, the UAE was Iran’s largest source of imports, accounting for more than 30% of the country’s total imports in 2024, according to World Trade Organisation data.
However, analysts say the effectiveness of Washington’s latest pressure campaign will ultimately depend heavily on China, which maintains extensive financial, logistical and trade links with Iran.
Bob McNally, president of Rapidan Energy Group, said Beijing had already demonstrated its willingness to retaliate against US pressure.
He said crude markets were unlikely to react significantly to the latest sanctions threat unless Iran’s hardline leadership responded with further military escalation.
“The [crude] market is becoming a little less optimistic about this near-term and sustainable reopening of Hormuz,” McNally said on CNBC’s “Squawk Box Asia” on Thursday.
Ship traffic through the Strait of Hormuz also remained significantly below pre-war levels last week, as attacks on vessels and a US naval blockade of Iranian ports kept most operators away from the strategic waterway.
Preliminary data from Lloyd’s List Intelligence showed 73 vessel transits in the week ending August 16, down from 91 the previous week, with only a small group of operators continuing to use the route.
Brent crude futures rose 0.5% to $92.09 a barrel on Thursday, while US West Texas Intermediate crude gained 0.3% to $86.07.
US stock futures, however, pared earlier gains following Trump’s announcement, with S&P 500 futures trading nearly flat.
Boluwatife Enome
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