Trump warns of economic consequences for any country that supports Iran

US President Donald Trump has warned that any country providing a "lifeline" to Iran will face "tremendous economic consequences". He announced a major new campaign to target Iran's economy, threatening punishment on countries that do business with the Islamic republic. According to Trump, activities that need to stop immediately include oil smuggling, swap lines, cash transfers, exchange houses, ship registries, and front companies.

The announcement comes as a war between the US, Israel, and Iran nears its sixth month, with no immediate diplomatic or military off-ramp in sight. The conflict has resulted in thousands of deaths and has impacted global markets, particularly with Iran's control of shipping through the Strait of Hormuz, a vital waterway for oil trade. A 60-day ceasefire had expired recently, with no sign of a resolution.

Iran's Brig Gen. Mohammad Reza Naqdi has dismissed Trump as "short-sighted" and "childish", saying he would trust a taxi driver's word more than Trump's statements. Naqdi claimed that Trump's words had weakened the US' global standing. The United Arab Emirates, a US ally, announced it would be severing all financial and economic ties with Iran, a day before Trump's announcement.

Brief written by urgent.news from Al-Monitor, Gulf News, RTE News, BBC World, BBC Business — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.