Trump vows tougher economic measures on Iran and supporting countries

Trump Announces Expanded Economic Measures Against Iran and Entities Supporting It

Donald Trump has stated he will impose additional economic measures against Iran and any country whose institutions or companies conduct business with it. The US president posted on Truth Social in capital letters that the steps would constitute "the most crushing economic operation ever taken against any country," without naming specific nations beyond Iran or providing operational details.

The announcement followed the formal expiration of a 60-day ceasefire on Monday, with no diplomatic agreement reached in the conflict that began at the end of February. Iranian Foreign Minister Abbas Araghchi described the threat as a diversion from US economic issues and said continued pressure would increase animosity toward the United States.

The United States had previously imposed sanctions in April on foreign banks and firms engaged in transactions with Iran after military operations did not produce the regime change or surrender initially anticipated by the administration. Since the start of the conflict, Iranian forces have restricted marine traffic through the Strait of Hormuz, which has contributed to higher global energy prices. The measures come ahead of US midterm elections in November, during which the administration has faced questions about the economic effects of the conflict on American consumers.

In his Wednesday post, Trump said the new steps were required because Iran had not reached an agreement with the United States. "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," he wrote. He listed activities including oil smuggling, swap lines, cash transfers, exchange houses, ship registries, and front companies, stating they must cease immediately.

Trump did not detail the specific penalties that might apply. The post followed an announcement by the United Arab Emirates that it would end all financial and economic ties with Iran. The UAE defence ministry reported detecting two ballistic missiles launched from Iran toward maritime traffic; both landed in the sea. Iranian entities have historically used financial channels in Dubai for transfers through exchange houses and shell companies.

After the UAE decision, Iran's armed forces warned neighbouring Gulf states that assistance to US military operations would be viewed as collusion. China, the largest purchaser of Iranian oil, was not named in the post. The United States has sanctioned several privately owned refineries in China's Shandong province since the conflict began. China's Ministry of Commerce stated at the time that the sanctions violated international law and would not be recognised or enforced.

US Treasury Secretary Scott Bessent said last week that further measures would isolate Iran economically to an unprecedented degree. The Treasury Department and Pentagon had earlier outlined Operation Economic Fury, which included efforts to reduce Iranian revenue and a naval blockade of exports. Trump has also reportedly warned Oman against actions that would interfere with separate US talks with Iran aimed at reopening the Strait of Hormuz, through which approximately 20 percent of global crude oil and liquefied natural gas normally transits.

The BBC has requested comment from the Chinese embassy in Washington, the White House, and the US Treasury Department.