President Donald Trump announced that the U.S. will launch what he termed the "most crushing economic operation ever taken against any country" against Iran. This move, part of the existing "Operation Economic Fury" since April, aims to impose severe financial penalties on any nation that helps Iran evade sanctions. Trump emphasized that this will be "Economic Warfare and Isolation on an unprecedented scale," threatening countries whose financial institutions, businesses, airports, or government entities offer a "lifeline" to Iran.
Trump identified various channels to be shut down immediately, including oil smuggling, currency swap lines, cash transfers, exchange houses, ship registries, and front companies. He stated that Iran's navy, air force, and military production facilities have been destroyed, and its currency rendered worthless, asserting that the regime is "hanging by a thread." Trump called for allies to stand with the U.S. in this "ECONOMIC D-DAY" to isolate and defeat the Iran threat, vowing that Iran would never acquire a nuclear weapon.
Iran's foreign minister, Abbas Araghchi, rejected Trump's threats, labeling them a diversion from America's own financial crises and accusing the U.S. of "economic terrorism" that endangers the global economy and national sovereignty. Similarly, Iran's deputy foreign minister, Kazem Gharibabadi, dismissed the economic warfare as a subsequent failure after military efforts proved ineffective, denying that Iran's economy is on the brink of collapse. Chinese Foreign Ministry spokesperson Lin Jian urged diplomatic and political solutions instead of sanctions, while former Central Bank of Iran advisor Mehrdad Sepahvand noted Iran's economic resilience despite sanctions, attributing it to the country's diverse resources and strategic location.
The escalation follows the United Arab Emirates suspending all trade with Iran due to alleged missile firings. The U.S. has also refused to extend a truce with Iran, leaving the Strait of Hormuz standoff unresolved with traffic at a fraction of pre-war levels. Treasury Secretary Scott Bessent indicated that more announcements on unprecedented economic measures against Iran are expected next week, reinforcing the administration's intent to apply "measures like have never been seen in the history of economic isolation on a country."
