President Donald Trump announced Wednesday a significant new economic offensive aimed at Iran, stating that any country conducting business with the Islamic republic will face "tremendous" punishment. The intensified campaign of economic pressure comes as the conflict with Iran nears its sixth month without a clear diplomatic or military resolution, and the Strait of Hormuz remains significantly disrupted.
"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 on his social media platform, Truth Social. He added that any nation allowing its financial institutions, businesses, airports, or government entities to provide a "lifeline" to Iran would face "TREMENDOUS Economic Consequences."
While Trump did not specify the exact nature of the punishments or name countries other than Iran, he identified several activities that he stated must cease immediately. These include "oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies."
US Treasury Secretary Scott Bessent had indicated the previous week that the U.S. would increase efforts to isolate Iran economically, describing it as a dual strategy alongside a naval blockade. Bessent told Newsmax, "It will be a combination of economic isolation, like the world has never seen before."
The U.S. Treasury has been engaged in an operation named Operation Economic Fury for months, which aims to cut off Iran's funding through targeted sanctions. This initiative is part of a broader effort to address the ongoing conflict, which began on February 28 with U.S.-Israeli attacks on Iran, leading to retaliatory missile and drone strikes across the region. The conflict has severely impacted shipping traffic through the Strait of Hormuz.
Iran has maintained a defiant stance. Abbas Araghchi, Iran's foreign minister, characterized Trump's plan as a "diversion" from the U.S.'s own economic challenges, citing the nation's "unprecedented debt & surging interest costs." He further stated on X that "Doubling down on failed policies will only bring further defeat—and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide." Araghchi also shared reports concerning the U.S. national debt, which has reportedly reached $40 trillion.
Despite the disruptions, Trump claimed on Wednesday that U.S. military efforts were aiding ships transiting the Strait of Hormuz, stating, "right now, a lot of boats are coming through." Reports from Axios suggest that U.S. forces have been facilitating the passage of 15 to 20 ships daily in recent weeks, carrying approximately half the volume of oil shipments seen before the conflict.
In a related development, the United Arab Emirates announced on Tuesday that it was suspending all economic dealings with Iran, following an assertion that it had been targeted by two ballistic missiles. The UAE, a significant trading partner for Iran prior to the conflict, shares close cultural and historical ties with its Gulf neighbor.
Trump concluded his announcement by stating, "We need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat."