The Latest: Regional powers seek off-ramp as Iran war drags on months longer than Trump promised

How will Iran react to Trump's economic D-Day? The Trump administration has announced a comprehensive economic blockade against Iran, dubbed the "economic D-Day," with Treasury Secretary Steven Bessent vowing the most stringent sanctions campaign in history. However, the outlined sanctions regime lacks specific details and already targets numerous Iranian individuals and entities.

The primary focus is on countries and financial networks that trade with Iran, particularly China and the United Arab Emirates (UAE), due to their significant role in Iranian trade. The UAE has vowed to cease all Iran-related transactions, but the extent of ongoing bilateral commerce remains uncertain. China's response is a more critical test, as Beijing is expected to closely scrutinize the sanctions and assert its interests fiercely.

Tehran might face a dual challenge in mitigating the economic fallout and maintaining its economic ties with the global community. President Masoud Pezeshkian and his team have emphasized the urgent need to end the war due to the economic strain on the Iranian populace. However, Iranian officials like Mohsen Rezaei and the Supreme Leader advocate for a more robust response.

The success of Trump's sanctions will hinge on Tehran's reaction, with a possible scenario of Iran opting for economic collapse to avoid prolonged conflict.