Trump announces 'most crushing economic operation ever taken' against Iran

On Wednesday, President Donald Trump unveiled what he dubbed the "most crushing economic operation ever taken" against any nation, following Iran's failure to reach a deal with the United States. Speaking on Truth Social, Trump emphasized that he provided Iran with its "greatest opportunity to make a Deal," and described the new strategy as "Economic Warfare and Isolation on an unprecedented scale."

The president warned that any country permitting financial institutions, businesses, or government entities to provide support to Iran would face "TREMENDOUS Economic Consequences." Trump listed various forms of support, including oil smuggling, swap lines, cash transfers, exchange houses, and ship registries, stating that all needs to stop "NOW." He added, "You know who you are."

Referring to Iran's precarious situation, Trump claimed the country was "hanging by a thread" due to a destroyed military and a "worthless" currency. He claimed that these "HISTORIC MEASURES" would cripple Iran and its ability to project terror worldwide. Treasury Secretary Scott Bessent had previewed the economic campaign the previous Thursday, stating that the US was preparing to announce new measures amounting to a "combination of economic isolation like the world has never seen before."

Iran's economy is in a severe crisis, with the rial collapsing, plummeting oil and trade output, and soaring inflation. Despite this dire situation, Iran has not capitulated to US demands, instead opting to wait things out. Since the ceasefire between the US and Iran broke down in early July, the two countries have engaged in sporadic tit-for-tat strikes, neither party eager to return to full-scale war.

In recent weeks, Washington has been exploring ways to reopen the Strait of Hormuz, which Iran effectively closed at the start of the conflict in late February. However, Iran's position as the second-most sanctioned country in the world, with over 6,000 punitive economic measures against its financial, energy, petrochemical, aviation, and cryptocurrency sectors, presents a significant challenge.

Nonetheless, the US appears to hope that announcing economic consequences for countries dealing with Iran could be the key to forcing Tehran into a deal more favorable to Washington.