Donald Trump has announced he will launch tougher economic measures against Iran - and, in a bold move, against literally anyone who dares to do business with it. The US president took to Truth Social in all caps, naturally, to declare he was unleashing "the most crushing economic operation ever taken against any country," though he was characteristically light on specifics like, say, which countries besides Iran he meant.
This dramatic proclamation comes just after a 60-day ceasefire formally expired on Monday with no diplomatic settlement in sight for the war the US and Israel started at the end of February. Tehran, for its part, responded that Trump's threat would only foster further animosity - which seems about as predictable as the sun rising in the east.
If realized, this would extend an already aggressive campaign of economic pressure aimed at forcing Iran into submission. The US slapped sanctions on foreign banks and firms doing business with Iran back in April, when it became clear that military action wasn't going to topple the regime or make it surrender - despite Trump's initial hopes. Meanwhile, Iran has managed to disrupt marine traffic through the Strait of Hormuz, sending global energy prices climbing, which is awkward for Trump heading into the November midterms with voters grumbling about the cost of war.
In his Wednesday evening post, Trump dubbed this the "economic D-Day" on Iran, because Tehran failed to make a deal with the US. He warned 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," and demanded that "Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies - it all needs to stop NOW. You know who you are." He didn't specify what the punishment would be, but the ominous vagueness is presumably part of the charm.
This all comes a day after the United Arab Emirates - a US ally, mind you - announced it would sever all financial and economic ties with Iran, following a new missile threat. The UAE's defence ministry said it detected two ballistic missiles launched from Iran targeting maritime traffic, both of which splashed into the sea. Iranian entities have long used Dubai's financial system for money transfers via exchange houses and shell companies, so this is a significant cut.
Unsurprisingly, Iran's armed forces warned neighboring Gulf states against supporting the US military, calling any assistance "collusion." And while China wasn't named in Trump's post, Chinese businesses are the biggest buyers of Iranian oil - a key funding source for Tehran. Washington has already sanctioned several "teapot refineries" (privately owned oil plants, mostly in Shandong province, eastern China), prompting China's Ministry of Commerce to declare the sanctions "in violation of international law" and order that they "shall not be recognized, enforced or complied with."
The Chinese embassy in Washington told the BBC, "Sanctions and pressure do not help resolve the issue," and called for "responsible actions" through political and diplomatic channels. Iran's Foreign Minister Abbas Araghchi dismissed Trump's post as "a diversion" from America's own economic woes, adding that "Doubling down on failed policies will only bring further defeat - and enmity of Iranians."
This all follows Operation Economic Fury, announced by the US Treasury Department and the Pentagon in April, which aimed to degrade Tehran's warfighting capability by cutting off revenue streams and included a naval blockade to stop Iranian exports. US Treasury Secretary Scott Bessent said last week that the US would soon impose economic isolation on Iran "like the world has never seen before." And in a rather creative twist, Trump reportedly threatened to bomb Oman - a US ally - if it "gets in the way" of his administration's talks with Iran. The US and Oman have been negotiating separately with Tehran to reopen the Strait of Hormuz, through which about 20% of the world's crude oil and LNG usually flows.
So, as the US pauses its war with Iran, one has to wonder: is Trump running out of weapons, or just out of patience?