‘Tremendous costs’: Can Trump stop other countries from trading with Iran?

US President Donald Trump has warned that the United States could escalate economic pressure on Iran, threatening "ECONOMIC D-DAY" and "Economic Warfare and Isolation on an unprecedented scale." He stated that countries and businesses that continue supporting Iran financially or commercially could face severe US penalties, including cuts to access to financial institutions, cash transfers, and oil-smuggling networks.

China, being Iran's largest oil buyer, is of particular concern, as the US threat could lead to a new economic confrontation between Washington and Beijing. Trump emphasized that any country allowing financial institutions, businesses, airports, or government entities to provide a "lifeline" to Iran would face tremendous economic consequences.

The US strategy aims to restrict Iran's ability to earn foreign currency, sell oil, and engage in international trade, with the broader objective of making it significantly harder for Iran to conduct international trade. However, as Iran has been under US sanctions for decades, it has developed alternative financial channels and networks, which may limit the effectiveness of additional sanctions.

China has rejected the US approach, emphasizing that sanctions and pressure would not resolve the crisis and called for a diplomatic solution.