US President Donald Trump issued a new major warning against Iran and other nations offering the West Asian country a “lifeline” by engaging in trade or otherwise harbouring any supportive ties. Branding the punitive campaign “ECONOMIC D-DAY,” he said such countries must help “isolate, and defeat, the Iran threat.”
At first, he threatened to impose “draconian sanctions” on Tehran as part of what he described would be the “most crushing economic operation ever taken against any country.” Then, he targeted nations and businesses supporting Iran economically, urging them to isolate the country or face sweeping consequences.
Trump’s eye-widening announcement surfaced on social media hot on the heels of the United Arab Emirates (UAE), Iran’s second-largest commercial partner, declaring that it was halting all trade and financial transactions with Tehran “until further notice.” The decision was spurred into action after the UAE said that two ballistic missiles launched from Iran were “targeting maritime navigation.” Iran denied the accusations.
A day ago, Iranian Parliament Speaker Mohammed Bagher Ghalibaf also hit back at US officials, accusing them of “squeezing Iran” to “win concessions that were never part of the agreement” Tehran and Washington signed mid-June. The 60-day deadline of the memorandum of understanding (MoU) aimed at resolving the ongoing conflict in West Asia and fully reopening the Strait of Hormuz expired earlier this week.
Trump threatens massive sanctions against Iran and its allies
Taking to his Truth Social platform on Wednesday, Trump expressed his readiness to launch what he believes “will be the Economic Warfare and Isolation on an unprecedented scale” against Iran.
He claimed that no one has given Iran a “greater opportunity to make a Deal than” him; however, they have “TRAGICALLY” failed to take it. Elsewhere, during a White House tech roundtable, Trump said that the United States imposed “draconian sanctions” on Iran after it failed to seal a deal with America.
“Well, we have things that we could sanction,” he told reporters at the presidential mansion. “We have very draconian sanctions, and we’ll see what happens.”
The POTUS continued arguing on social media that the current Iranian regime is “hanging by a thread.” He further stressed that Iran’s armed forces and their production facilities have been decimated and brought to nothingness.
Reiterating that Iran will never be allowed to possess a nuclear weapon, Trump asserted that he seeks to shut down the country’s channels of oil smuggling, cash transfers, ship registries, currency swap lines, front companies and exchange houses as soon as possible.
The Republican politician foregrounded that “any country” providing “any type of lifeline to Iran” through its financial institutions, airports, businesses, or government would face “TREMENDOUS Economic Consequences.”
Continuing a long-running streak, Trump also insisted that the Strait of Hormuz is open. Speaking to reporters at the White House, he added, “A lot of boats are coming through. People aren’t reporting that. And that may slow down a little bit at some point.”
Alluding to the naval blockade the US imposed on Iranian ports, he continued, “Except for a couple of little pauses where we opened it purposely at, with the deal. But the deal didn’t turn out to be what they said. You know, when they tell us one thing and they do another.”
He maintained that the blockade has been “100% successful,” with no boats getting into Iran despite reaching other places.
“It’ll either be extremely good and oil prices are going to drop like Iraq, or will continue to do exactly what we’re doing,” Trump said. He has continued to maintain an unapologetic stance about the US launching military action against Tehran and claiming that high oil and gas hikes are worth the cost as long as Iran doesn’t acquire a nuclear weapon.
A few days ago, the MAGA leader told Fox News that the United States is ready to hit Iran hard economically to shake up the ongoing war now entering its sixth month. Meanwhile, US Treasury Secretary Scott Bessent told Newsmax that America may soon announce new measures that could trigger a “combination of economic isolation like the world has never seen before.”
Where does Iran stand?
On the other hand, Iran’s senior officials have stressed that no direct negotiations with the US are currently on the table. Iranian Foreign Minister Abbas Araghchi said earlier this month that peace talks will not resume until Washington stops violating the MoU, according to Iran International.
Although Iran and Oman are edging closer to an agreement on reopening the Strait of Hormuz, Mohammad-Bagher Zolghadr, secretary of Iran’s Supreme National Security Council, also maintained that the waterway will remain closed until the US meets Tehran’s conditions.
He stated, “Correcting its behaviour means that Iran must never again be threatened or humiliated, aggression against Iran and its allies must end permanently, the naval blockade must be lifted, US naval and air forces must withdraw from around Iran, war damages must be compensated, sanctions must be lifted and Iran’s frozen assets must be released.”
In the meantime, oil prices surged to their highest level in almost four weeks on Wednesday. According to Reuters, Brent crude futures settled 60 cents, or 0.7%, higher at $91.62 a barrel, and US West Texas Intermediate crude climbed 89 cents, or 1.1%, to settle at $85.83 a barrel.