WASHINGTON: US President Donald Trump has threatened countries with “tremendous” economic consequences if they continue providing financial, commercial or logistical support to Iran, as Washington moves to intensify economic pressure on Tehran amid the ongoing conflict.
Trump announced the new campaign on Wednesday, describing it as an unprecedented effort to isolate Iran economically and cut off what he called financial “lifelines” to the country.
He warned that countries allowing their financial institutions, businesses, airports or government entities to assist Iran could face severe economic repercussions.
Trump did not specify what measures would be imposed on countries that violate the new restrictions, and he did not identify any country other than Iran.
Trump targets Iran’s financial lifelines
The US president specifically called for an end to activities including oil smuggling, financial swap arrangements, cash transfers, exchange houses, ship registrations and the use of front companies.
The announcement marks a further escalation in Washington’s campaign to restrict Iran’s access to international finance and trade.
US Treasury Secretary Scott Bessent had also warned last week that Washington would intensify efforts to economically isolate Iran as part of a broader strategy that includes a US naval blockade.
The US Treasury has been implementing a sanctions campaign known as Operation Economic Fury, aimed at restricting sources of funding for Iran.
Iran rejects US economic pressure
Iranian Foreign Minister Abbas Araghchi rejected the latest US measures, saying Washington’s intensified economic campaign would not force Tehran to change its position.
Araghchi described the US economic pressure as a distraction from America’s own economic challenges and warned that further sanctions would increase tensions rather than produce a political settlement.
He also accused Washington of threatening the global economy and national sovereignty through its economic measures.
Iran has maintained a defiant position despite months of US military operations, while the Pentagon has rejected reports that the conflict has significantly depleted US ammunition stocks.
Strait of Hormuz remains under pressure
The latest escalation comes as shipping through the Strait of Hormuz remains significantly disrupted.
The conflict began on February 28 with US and Israeli attacks on Iran, followed by Iranian missile and drone strikes against targets across the region.
Iran’s military response has sharply reduced commercial shipping through the strategically important waterway, which is a major route for global energy supplies.
Trump said on Wednesday that US military efforts were helping ships transit the strait, claiming that a significant number of vessels were now passing through.
According to a report by Axios cited in the media, US forces had been facilitating the movement of between 15 and 20 ships through the Strait of Hormuz each night in recent weeks. The reported traffic represented roughly half of the volume recorded before the conflict.
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Diplomatic prospects remain uncertain
The latest threats come as diplomatic efforts between Washington and Tehran remain uncertain.
Both sides have acknowledged that messages have been exchanged in recent days, but Trump said on Tuesday that talks were no longer taking place.
He also posted a message suggesting that the Strait of Hormuz could become “NEW US Territory”, adding to concerns over the future of the strategically vital waterway.
The United Arab Emirates also announced on Tuesday that it was suspending all economic dealings with Iran after saying it had been targeted by two ballistic missiles.
The UAE and Iran have longstanding cultural, historical and commercial ties, with the Gulf state having served as an important trading partner for Iran despite extensive US sanctions.
Trump calls on allies to isolate Iran
Trump has urged US allies to join Washington’s campaign against Tehran.
“We need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” Trump said in a social media post.
The latest announcement raises the possibility that countries maintaining trade or financial links with Iran could face pressure from Washington, potentially adding another layer of uncertainty to international trade and energy markets.
For countries such as Pakistan, which remains geographically close to Iran and is exposed to developments in regional energy markets, prolonged disruption in the Strait of Hormuz could have wider economic and energy implications.
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