Trump vows ‘most crushing economic operation’ against Iran

President Donald Trump has announced that he will launch tougher economic measures against Iran and any country that helps or does business with it, describing the move as “the most crushing economic operation ever taken against any country”. In an all-caps post on Truth Social, the US president declared an “economic D-Day” on Tehran, vowing that any nation allowing its financial institutions, businesses, airports or government entities to provide a “lifeline” to Iran would face “TREMENDOUS Economic Consequences”. He gave no further details of the measures or named specific countries, but warned that “oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies—it all needs to stop NOW”.

The threat came a day after the 60-day ceasefire formally expired on Monday without any sign of a diplomatic settlement to the war the US and Israel began against Iran at the end of February. Tehran responded coolly, with Foreign Minister Abbas Araghchi writing on X that Trump’s post was “a diversion” from America’s own economic problems and that “doubling down on failed policies will only bring further defeat—and enmity of Iranians”. If realised, the new measures would extend a campaign of economic pressure that Washington launched in April with a wave of sanctions on foreign banks and firms doing business with Iran, after it became clear that military action had not forced the regime’s surrender.

Trump’s latest salvo comes a day after the United Arab Emirates, a US ally, announced it would sever all financial and economic ties with Iran following a new missile threat. The UAE’s defence ministry said it had detected two ballistic missiles launched from Iran targeting maritime traffic, both of which landed in the sea. Iranian entities have long used Dubai’s financial system to transfer money through exchange houses and shell companies; Tehran’s armed forces have warned neighbouring Gulf states against providing support to the US military, saying any assistance would be considered collusion. Iran has also been able to stem marine traffic through the Strait of Hormuz, raising global energy prices—a pressure point ahead of the US midterm elections in November.

While China was not named in the president’s post, its businesses are the biggest buyers of Iranian oil, a key source of Tehran’s funding. Since the start of the war, Washington has sanctioned several so‑called teapot refineries—privately owned oil processing plants, mostly in Shandong province—and China’s Ministry of Commerce has previously said such measures were “in violation of international law”, ordering that they “shall not be recognised, enforced or complied with”. The BBC has contacted the Chinese embassy, the White House and the US Treasury Department for comment.

Operation Economic Fury, announced by the Treasury and the Pentagon in April, aimed at degrading Tehran’s warfighting capability by cutting off its revenue streams and included a naval blockade to stop Iranian exports. Treasury Secretary Scott Bessent said last week that the US would soon impose economic isolation on Iran “like the world has never seen before”. Trump has also reportedly threatened to bomb Oman—a US ally—if it “gets in the way” of his administration’s own talks with Tehran. The US and Oman have been negotiating separately with Iran to reopen the Strait of Hormuz, through which about 20 per cent of the world’s crude oil and liquefied natural gas usually flows. For now, the president’s latest threat signals an escalation that risks further entangling global economies in the confrontation.