China slams Trump over economic war on Iran: What to know

U.S. President Donald Trump cautioned that any nation supplying "any type of lifeline to Iran" could face significant economic repercussions as the U.S. attempts to conclude the war it initiated with Iran and Israel around six months ago. The conflict has resulted in numerous casualties, rapidly escalating tensions in the Gulf and causing global markets to reel as Iran demonstrated its capacity to disrupt shipping through the Strait of Hormuz, which once facilitated a fifth of the world's traded oil before February.

Despite two attempts at ceasefire agreements in April and June, both have failed, even though Israel has largely withdrawn from the fighting. In a social media post, Trump vowed to implement "Economic Warfare and Isolation on an unprecedented scale" without providing specifics. Iran, accustomed to years of stringent sanctions since the 1979 Islamic Revolution, warned that Trump's threats were aimed at misdirecting domestic issues, such as ballooning debt and climbing interest rates, and would further damage international relations.

Iran's Foreign Minister, Abbas Araqchi, accused the U.S. of pursuing "economic terrorism" that jeopardizes global economies and national sovereignty. Meanwhile, China, the world's largest buyer of Iranian oil, cautioned against further economic pressure, advocating for diplomatic solutions. The U.S. aims to dismantle Iran's nuclear program and impose stricter nuclear restrictions, a goal that has proven elusive thus far.