Trump launches ‘Economic D-Day’ against Iran, threatens its trade partners
He cites its failure to reach a deal, warns of consequences for countries that give it ‘any type of lifeline’
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[SAN FRANCISCO] The US will begin what US President Donald Trump said would be an unprecedented economic warfare operation against Iran, after faulting the country for failing to take its chance to make a deal with him.
“Therefore, 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 said in a social media post on Wednesday (Aug 19).
The post did not specify the measures the US would take.
Iran is already subject to widespread US sanctions, and the American military has sought to enforce a maritime blockade on the country.
The Trump administration has in recent weeks shifted from military options to economic pressure on Iran as the war drags on with negotiations deadlocked.
Treasury Secretary Scott Bessent had openly warned the US was preparing to unleash unprecedented measures to squeeze the Islamic Republic’s economy.
Trump said on Wednesday the pressure campaign would extend to Iran’s trading partners, warning that “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 listed examples of aid to Iran that its economic partners should cease, including exchange houses, cash transfers and swap lines, ship registries, front companies and oil smuggling.
That firm red line could invite tough decisions for the Trump administration given Iran’s ties to China and test its appetite for going after entities tied to Beijing.
Oil held four days of gains, with West Texas Intermediate for October trading above US$84 a barrel, while Brent closed near US$92.
Trump’s announcement comes a day after the United Arab Emirates severed economic ties with Iran, citing “escalations that undermine regional and international peace and security”.
While US allies have been reluctant to join the military campaign Trump and Israel began in late February, the president called on them to help choke off Iran economically.
“This will be an ECONOMIC D-DAY, and we need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” he said. BLOOMBERG
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