Trump vows tougher economic measures on Iran and supporting countries

President Donald Trump has announced plans to implement even harsher economic sanctions against Iran, as well as any nation that assists or conducts business with the country. Trump wrote in all capital letters on Truth Social that he was initiating "the most crushing economic operation ever taken against any country," without specifying the names of any nations other than Iran.

This announcement came after a 60-day ceasefire expired on Monday without any indication of a diplomatic resolution to the conflict initiated by the US and Israel in late February. Iran responded by stating that Trump's threat would only escalate tensions further. If carried out, the economic measures would intensify an ongoing campaign of pressure aimed at compelling Iran into submission.

The US imposed a series of sanctions on foreign banks and companies dealing with Iran in April, recognizing that military action had not resulted in the overthrow of the Iranian regime or its surrender, contrary to Trump's initial expectations. Iran has successfully halted the flow of maritime traffic through the Strait of Hormuz, contributing to global energy price increases. With the US midterm elections approaching in November, Trump is under pressure regarding the financial impact of the war on American consumers.

In his statement, Trump declared that "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences." However, he did not outline the specific penalties that countries might face. His remarks followed the UAE, a US ally, severing all financial and economic ties with Iran in response to a fresh missile threat from Tehran.

The UAE's defense ministry reported detecting two ballistic missiles launched from Iran aimed at maritime traffic, both of which landed in the sea. Iranian entities have frequently leveraged Dubai's financial system for money transfers via exchange houses and shell companies. Iran's armed forces cautioned neighboring Gulf states against providing assistance to the US military, stating that such support would be deemed collusion.

While China was not explicitly mentioned, it is the largest purchaser of oil from Iran, a crucial source of revenue for Tehran. The US has sanctioned numerous "teapot refineries" – privately owned oil processing plants primarily located in Shandong province, eastern China. The Chinese Ministry of Commerce had previously denounced these sanctions as "in violation of international law and the basic norms governing international relations" and refused to recognize, enforce, or comply with them.

Iranian Foreign Minister Abbas Araghchi dismissed Trump's latest post as a "diversion" from America's own economic challenges, asserting that exacerbating the current failures would only lead to greater conflict and hostility against Iranians.

The US Treasury Department and Pentagon announced "Operation Economic Fury" in April, targeting Tehran's war-fighting capacity by eliminating its revenue sources, and also included a naval blockade aimed at halting Iranian exports. Treasury Secretary Scott Bessent recently indicated that the US plans to impose economic isolation on Iran "like the world has never seen before."

Trump has also reportedly threatened to bomb Oman, another US ally, should it interfere with his administration's talks with Iran. The US and Oman have been separately negotiating with Tehran to reopen the Strait of Hormuz, a crucial trade route accounting for approximately 20% of global crude oil and liquefied natural gas flow.

The BBC has reached out to the Chinese embassy in Washington, the White House, and the US Treasury Department for their perspectives on these developments.