US vows ‘economic D-Day’ as Iran threatens to halt all oil exports

The United States has issued a stern warning to Iran, vowing to unleash its most extensive economic assault to date if the conflict persists. Treasury Secretary Steven Bessent is scheduled to address the media at 2pm EDT (1800 GMT) on Monday, where he is expected to unveil additional punitive measures against Iran, a nation that has been grappling with sanctions since the Islamic Revolution of 1979.

The United States and Israel have refrained from direct military action for weeks, yet they have also failed to engage in constructive dialogue to resolve the six-month-old dispute. The ongoing hostilities have resulted in thousands of deaths, predominantly in Iran and Lebanon, since the inception of the strikes on February 28, causing significant economic strain and inflicting damage on Iran's military capabilities.

Iran, however, has maintained a sufficient arsenal of missiles and drones to target neighboring Gulf states and threaten oil tankers in the Strait of Hormuz, causing a near-standstill in maritime traffic and exerting pressure on global fuel prices. In response to the mounting economic tensions, Iran has mobilized its military and issued dire warnings, declaring that it would cease all oil exports if the economic blockade endures.

The country has also threatened to label any entity supporting the United States' economic war against Iran as an aggressor. The US has urged China to collaborate in resolving the situation, as China imports half of its oil supplies from the Gulf region. Despite the economic adversities, Iran's government remains defiant, acknowledging the detrimental impact of further sanctions on its legitimacy and escalating hardships.

Diplomatic efforts to negotiate a peaceful resolution have been pursued by various nations, including Qatar, Pakistan, and Turkey, although concrete progress has been elusive.