U.S. President Donald Trump announced a sweeping new economic campaign against Iran on Thursday, warning of 'tremendous economic consequences' for any country conducting business with Tehran. The measures, described as the 'most crushing economic operation ever taken against any country,' mark a strategic shift toward sustained economic pressure rather than military action in the ongoing conflict.
The announcement follows Iran's declaration that the Strait of Hormuz will remain closed until the U.S. complies with an interim deal signed in June, which lapsed earlier this week with no party indicating a willingness to renew it. Before the late-February start of the war, the waterway handled roughly 20% of the world's oil and liquefied natural gas shipments. Shipping data shows tanker traffic has slowed to a trickle, despite U.S. assertions that the strait remains open.
Iranian Foreign Minister Abbas Araghchi accused Trump of attempting to divert attention from 'unprecedented debt and surging interest costs' facing Washington, asserting that 'doubling down on failed policies' would only lead to 'further defeat.' Tehran has already been subjected to stringent U.S. sanctions on its oil sector, with Washington blockading Iranian ports.
Trump framed the initiative as 'economic warfare and isolation on an unprecedented scale,' declaring it an 'economic D-Day' requiring allied support to isolate and defeat the Iran threat. He reiterated that Iran cannot be permitted to obtain nuclear weapons. The White House has not provided specific details on the scope or implementation timeline of the new measures.
