Trump vows ‘tremendous’ economic costs for countries doing business with Iran
US President Donald Trump has threatened countries doing business with Iran with “tremendous” economic consequences as Washington steps up pressure on Tehran amid the ongoing war.
President Donald Trump announced a sweeping new effort to economically isolate Iran on Wednesday, threatening severe punishment on any nation aiding or doing business with the Islamic republic. This intensified campaign comes as the war with Iran enters its sixth month with no clear resolution on the horizon, with the Strait of Hormuz still largely blocked to shipping. As November elections loom, Trump is also under pressure domestically to explain the war's impact on American consumers and the military.
The new strategy, dubbed "Economic Warfare and Isolation," aims to impose unprecedented economic consequences on any country allowing its financial institutions, businesses, airports, or government entities to provide any type of access to Iran. The Treasury Secretary echoed Trump's remarks, stating that the US will ramp up its efforts to economically isolate Iran, in conjunction with a naval blockade.
The US Treasury is already implementing an operation dubbed "Economic Fury" to cut off Iran's funding through targeted sanctions.
Iran has responded defiantly, managing to persist despite months of US military operations aimed at ending the conflict. Reports suggest Iran has significantly reduced its stockpile of US munitions. The Pentagon has dismissed these claims. The six-week-old conflict erupted on February 28 following US-Israeli strikes on Iran, to which Iran retaliated with missile and drone attacks across the region.
The Strait of Hormuz, a crucial trade route, has been severely restricted by Iran's missile and drone strikes, with only a fraction of pre-war oil shipments currently passing through.
Despite recent reports of US forces assisting ships navigating the strait, Trump dismissed these efforts on Wednesday, suggesting the strait could become a "new US territory." The United Arab Emirates, a key trading partner for Iran, announced on Tuesday that it would suspend all economic dealings with Iran following a missile attack. Both the UAE and Trump emphasized the need for allies to join the US in isolating and defeating Iran.
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