Trump vows ‘tremendous’ economic costs on Iran partners
Sign up now: Get ST's newsletters delivered to your inbox
US President Donald Trump is facing renewed domestic political scrutiny over the Iran war, with November elections quickly approaching.
PHOTO: BLOOMBERG
- President Trump announced a major economic campaign to punish countries that do business with Iran, calling it "the most crushing economic operation ever."
- The US aims to isolate Iran economically through sanctions and naval efforts, despite ongoing conflict and disruption in the Strait of Hormuz.
- The UAE suspended economic ties with Iran after missile attacks, while Trump urged allies to unite in isolating Iran as tensions escalate.
AI generated
WASHINGTON - US President Donald Trump said on Aug 19 that he was launching a major new campaign to target Iran’s economy, threatening “tremendous” punishment on any country that helps or does business with the Islamic republic.
The intensified economic pressure campaign comes as the war nears its sixth month with no immediate diplomatic or military off-ramp in sight and the vital Strait of Hormuz still significantly choked off.
With November elections quickly approaching, Trump is also facing renewed domestic scrutiny over the war’s costs on US consumers and toll on the military.
“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 wrote on Truth Social.
“I am also announcing that 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 said.
He did not specify what punishment countries would face, and none other than Iran were mentioned by name.
He listed several activities that he said need to stop immediately: “oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies”.
Treasury Secretary Scott Bessent had similarly said last week that the US would soon be ramping up efforts at economically isolating Iran, as part of a two-pronged approach with a US naval blockade.
“It will be a combination of economic isolation, like the world has never seen before,” Bessent told conservative television network Newsmax.
The US Treasury has for months been carrying out an effort, dubbed Operation Economic Fury, aiming to cut off Iran’s funding with targeted sanctions.
Iran has struck a defiant tone, having survived months of US military operations that failed to bring a decisive end to the war and has – according to US media reports – severely drawn down US munition stockpiles.
The Pentagon has denied these reports.
The conflict broke out on Feb 28 with US-Israeli attacks on the Islamic republic, which retaliated with missile and drone strikes across the region.
Tehran’s missile and drone threat has severely curtailed shipping traffic through the strait, as a framework US-Iran deal to reopen it collapsed.
However, Trump earlier on Aug 19 touted US military efforts to aid ships out of the strait, saying that “right now, a lot of boats are coming through”.
Digital media outlet Axios reported that US forces were facilitating the transit of 15 to 20 ships in and out of the Hormuz each night in recent weeks – carrying “roughly half the pre-war volume” of daily oil shipments.
In recent days, both sides have said messages were being exchanged. However, Trump on Aug 18 insisted talks were off and posted a message on social media suggesting the strait could be a “NEW US Territory”.
On Aug 18, the UAE announced that it was suspending all economic dealings with Iran after saying it had been targeted by two ballistic missiles.
The neighbours across the Gulf share deep cultural and historical ties, and the United Arab Emirates – home to a sizeable Iranian community – had been a major trading partner for US-sanctioned Iran, at least before the war.
“We need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” Trump said on Aug 19 on Truth Social. AFP
