Trump threatens 'economic warfare' on Iran & penalties for countries helping it evade sanctions

U.S. President Donald Trump has threatened economic penalties on any nation aiding Iran in evading sanctions, describing the move as unprecedented economic warfare. In a post on Truth Social, Trump declared, "This will be economic warfare and isolation on an unprecedented scale." He claimed that Iran is hanging by a thread, with their navy gone, air force destroyed, military factories reduced to rubble, and currency worthless.

Trump warned that any country allowing financial institutions, businesses, airports, or government entities to provide aid to Iran would face severe economic consequences. He called for allies to join the U.S. in isolating Iran and noted that Iran will never possess a nuclear weapon.

Iran's Foreign Minister Abbas Araghchi condemned the "Economic D-Day," accusing America of creating a diversion from its own crisis due to unprecedented debt and surging interest costs. Araghchi warned that doubling down on failed policies would only lead to further defeat and Iranian enmity. The UAE suspended all trade and financial dealings with Iran following a day of missile exchanges, accusing Iran of firing two ballistic missiles towards it.

Iran denied firing the missiles, while the UAE emphasized its commitment to dialogue, cooperation, and regional integration. The Strait of Hormuz saw a significant drop in ship transits, with only 73 vessels passing through between August 10 and 16, down from 91 the previous week.