U.S. President Donald Trump announced on Wednesday that he is initiating a significant new effort to attack the economy of Iran, warning that there would be โtremendousโ retribution against any nation that trades with or assists Iran.
The stepped-up economic squeeze operation is taking place amid the sixth month of the conflict with no apparent diplomatic or military way out in sight and the crucial Strait of Hormuz remaining largely shut down.
As November elections are drawing near, President Trump also finds himself under fresh domestic pressure regarding the war’s costs for American citizens and for the military.
“I am announcing today the MOST CRUSHING ECONOMIC OPERATIONS EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale,” tweeted President Trump on Truth Social.
โANY country that permits its financial institutions, business, airports or even governmental organizations to offer any lifeline to Iran will experience TREMENDOUS Economic Consequences,โ he declared.
He did not state the form of retribution that countries would receive, nor was any other nation but Iran mentioned by name.
He cited many actions which should stop right away: โoil smuggling, swap lines, cash flows, exchange houses, ship registry, front companiesโ.
US Treasury Secretary Scott Bessent had likewise said just last week that the US would shortly step up its economic isolation of Iran, as part of a dual approach which also includes a US Navy blockage of Iran.
โIt will be a combination of economic isolation, as has never been seen before,โ Bessent said on conservative television network Newsmax.
Operation Economic Fury is an ongoing effort by the US Treasury Department to isolate Iranโs sources of money through sanctions targeting its funding sources.
Defiant stance of Iran
Iran has managed to take a defiant stance as it managed to survive months of military actions by the United States that failed to end the war decisively and, according to US media reports, reduced US weapons stockpiles significantly. The Pentagon has refuted these reports.
The conflict started on February 28 when the US and Israel launched attacks against Iran, which retaliated through missiles and drones attacks throughout the region.
Iran’s missile and drone threat has reduced significantly the shipping through the strait since the deal between the US and Iran to reopen it has fallen apart.
Nevertheless, Trump in his statements from early Wednesday has bragged about the efforts of the US military to help ships to exit the strait, saying “right now, a lot of boats are coming through”.
According to digital media publication Axios, US military forces have been helping about 15 to 20 ships per night to enter and leave the Hormuz โ carrying “roughly half the pre-war volume” of oil.
In the last days, both sides reported exchange of messages but Trump insisted talks were over and posted a message on social media regarding the strait as “NEW US Territory”.
The UAE declared on Tuesday that it was halting all commercial relations with Iran after claiming that it was attacked by two ballistic missiles.
The two states have common cultural heritage and historical relations, and the UAE, which is known to have an Iranian community, had been a significant trade partner for the sanctioned Iran, until the war broke out.
“We need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” Trump tweeted on Truth Social on Wednesday.
