WASHINGTON: United States President Donald Trump has announced a major new campaign targeting Iran’s economy, warning that any country providing financial or commercial support to Tehran could face “tremendous” economic consequences.
The move marks a further escalation in Washington’s pressure campaign against Iran as the conflict approaches its sixth month, with no immediate diplomatic or military resolution in sight. Shipping through the strategically vital Strait of Hormuz also remains significantly disrupted.
Trump, who is facing growing domestic scrutiny over the cost of the war and its impact on US consumers and military resources ahead of the November elections, announced the measures in a post on Truth Social.
“Today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale,” Trump wrote.
“ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences,” he said.
Trump did not specify what measures could be imposed on countries continuing to engage with Iran and did not name any country other than Iran.
He said activities including “oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies” must end immediately.
The announcement follows comments by Treasury Secretary Scott Bessent last week that Washington would intensify efforts to isolate Iran economically as part of a two-pronged strategy alongside a US naval blockade.
“It will be a combination of economic isolation, like the world has never seen before,” Bessent told conservative television network Newsmax.
The US Treasury has already spent months pursuing what it calls Operation Economic Fury, a sanctions campaign aimed at cutting off Iran’s sources of funding.
Iranian Foreign Minister Abbas Araghchi dismissed the latest US measures, describing Washington’s “Economic D-Day” as an attempt to divert attention from America’s own economic challenges. He warned that further pressure on Tehran would not succeed.
“Doubling down on failed policies will only bring further defeat—and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide,” he said.
Iranian defiance
Iran has continued to strike a defiant tone after months of US military operations failed to produce a decisive end to the conflict. US media reports have claimed that the war has significantly depleted American munition stockpiles, although the Pentagon has denied those reports.
The conflict began on February 28 following US-Israeli attacks on Iran, which responded with missile and drone strikes across the region.
Iran’s missile and drone capabilities have severely affected shipping through the Strait of Hormuz after a proposed US-Iran framework to reopen the waterway collapsed.
Trump said on Wednesday that US military efforts were helping vessels pass through the strait, claiming that “right now, a lot of boats are coming through”.
According to digital media outlet Axios, US forces have recently been facilitating the movement of between 15 and 20 ships through the Strait of Hormuz each night, accounting for approximately half of the pre-war daily volume of oil shipments.
Although both Washington and Tehran have recently acknowledged that messages were being exchanged, Trump said on Tuesday that talks were off. He also posted a message on social media suggesting that the strait could become a “NEW US Territory”.
The latest escalation comes after the United Arab Emirates announced on Tuesday that it was suspending all economic dealings with Iran, saying it had been targeted by two ballistic missiles.
The UAE has historically maintained significant cultural, historical and commercial links with Iran and has been an important trading partner for the US-sanctioned country.
“We need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” Trump said Wednesday on Truth Social.
