Trump Threatens 'Economic D-Day' Against Iran
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Donald Trump wrote in all-caps on Truth Social that he was launching 'the most crushing economic operation ever taken against any country' against Iran, threatening 'TREMENDOUS Economic Consequences' for any nation whose banks, businesses, airports, or government entities provide 'any type of lifeline' to Tehran.
- The UAE, a US ally, announced the day before it would sever all financial and economic ties with Iran after detecting two Iranian ballistic missiles launched at maritime traffic, and a 60-day US-Iran ceasefire expired Monday without a diplomatic settlement.
- Since the war began at the end of February, Iran has choked marine traffic through the Strait of Hormuz — a route carrying roughly 20% of the world's crude oil and LNG — driving up global energy prices.
- Operation Economic Fury, launched in April by the US Treasury and Pentagon, has already sanctioned foreign banks and firms dealing with Iran, imposed a naval blockade on Iranian exports, and sanctioned Chinese teapot refineries in Shandong that buy Iranian oil — prompting Beijing to publicly refuse to enforce the measures.
- Iran's Foreign Minister Abbas Araghchi dismissed Trump's threat as 'a diversion' from America's own economic problems, writing that 'doubling down on failed policies will only bring further defeat — and enmity of Iranians.'
- Iran's armed forces warned Gulf states that any support for US military operations would be considered 'collusion,' while Trump reportedly threatened to bomb Oman — another US ally — if it 'gets in the way' of separate US-Iran negotiations on reopening the Strait of Hormuz.
Why it matters: Trump's threat is unusually broad — it punishes any country providing a 'lifeline' to Iran without naming them, putting Gulf states and Chinese teapot refineries in Shandong on notice ahead of November midterms where the war's cost to American consumers is a political liability. The UAE, a US ally, just cut ties; China has publicly refused to enforce US sanctions.
Ask SkimNews
