President Donald Trump on Wednesday announced the United States is launching a new initiative targeting Iran‘s economy, demanding that allies back the effort.
The president warned Iran that “economic D-Day” is coming after he backed away this week from peace talks seeking to resolve the conflict, which has now stretched on for nearly six months. Trump said 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 urged all of Washington’s allies “to stand with the United States of America to isolate, and defeat, the Iran threat.”
“Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — It all needs to stop NOW. You know who you are,” Trump posted on Truth Social. “These maniacs are on the ropes, and these HISTORIC MEASURES will cripple them and their ability to project terror worldwide. IRAN WILL NEVER HAVE A NUCLEAR WEAPON.”
“No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it,” the president continued. “Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale.”
Trump’s announcement was previewed by Treasury Secretary Scott Bessent last Thursday. At the time, Bessent warned a new wave of actions against Iran would be coming, marking a “combination of economic isolation like the world has never seen before.”
“It will be a combination of economic isolation like the world has never seen before, and the continued blockade in the Strait of Hormuz that will keep anything from going in or out of the Iranian ports,” Bessent said.
The Strait of Hormuz lies between Iran and Oman and has emerged as the chief pressure point in the geopolitical conflict due to its strategic placement as a global oil channel.
The U.S. has for months battled to wrest control of the strait from Iran, as global oil and gas prices have surged since tankers worldwide have been caught in the middle of the conflict around the waterway. The U.S. has sought to put pressure on Iran to relieve blockages by putting a naval blockade on vessels seeking to enter or exit Iranian ports around the strait. The measure has already had a significant impact on Iran’s economy, costing it nearly $5 billion in oil revenue by the beginning of May. The head of the Iran-China Chamber of Commerce said last week that the naval blockade could cost Iran $18 billion annually if continued.
Though Iran continues to assert the strait will “remain shut” until the U.S. agrees to its conditions, Trump on Wednesday continued to claim Washington controls the critical waterway.
TRUMP POSTS MAP SHOWING STRAIT OF HORMUZ AS US TERRITORY
“Last night, we had a lot of boats come through,” he said. “We have possession, complete control of the strait, I mean, outside of nuisance value. And there has been nuisance value when they shoot a drone every once in a while.”
“And not everybody is going to go through, but they come through, and over the last couple of weeks we’ve had a lot of oil coming in. It’s not going to be perfect, but it’s a lot of oil coming in,” Trump added.