Trump Warns Trade Partners on Iran; Treasury Secretary to Detail Measures

President Donald Trump has escalated economic pressure on Iran, announcing what he described as the "most crushing economic operation ever" and framing it as "Economic Warfare and Isolation on an unprecedented scale" and "ECONOMIC D-DAY." Trump warned that any country providing support to Iran, including through financial institutions, businesses, or oil smuggling, would face "tremendous economic consequences."

U.S. Treasury Secretary Scott Bessent stated that oil markets are misinterpreting the implications of this pressure and expressed confidence that all parties desire the reopening of the Strait of Hormuz and lower energy prices, noting China's significant energy reliance on the Gulf. Bessent is scheduled to hold a press conference on Monday to elaborate on the specific actions the U.S. will take.

Iran's Foreign Minister Abbas Araghchi dismissed Trump's threats as "economic terrorism" and a diversion from domestic U.S. financial problems, such as record debt and rising interest rates. Iranian state media suggested that Tehran has become adept at circumventing U.S. restrictions, downplaying the announcement as not entirely new. The United Arab Emirates recently suspended financial ties with Iran, citing accusations of ballistic missile launches, which Iran denied.

The conflict alongside Israel has been ongoing for approximately five months, and Iran has faced continuous economic sanctions for nearly 50 years since its 1979 revolution.