Trump announces ‘crushing’ economic campaign against Iran, threatens allies with ‘tremendous’ penalties
&imwidth=600&imheight=450&format=webp&quality=medium "Trump announces ‘crushing’ economic campaign against Iran, threatens allies with ‘tremendous’ penalties")
Trump launches 'most crushing' economic campaign against Iran. Who else could be hit? Photograph: (AFP)
Trump has announced a dramatic new economic offensive against Iran, but his warning goes beyond Tehran. Countries and companies that continue helping Iran could also face severe consequences. So, who could be next in Washington's crosshairs?
US President Donald Trump on Wednesday (Aug 19) announced a sweeping new campaign aimed at isolating Iran's economy, warning countries and businesses that help Tehran could face what he called "tremendous" economic consequences.
The announcement comes as the conflict approaches its sixth month, with the Strait of Hormuz still heavily disrupted and no clear diplomatic or military resolution in sight. Trump is also facing growing scrutiny at home over the economic cost of the war and pressure on US military resources ahead of the November elections.
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Trump warns Iran's partners
In a post on Truth Social, Trump described the campaign as the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY".
"This will be Economic Warfare and Isolation on an unprecedented scale," he wrote.
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Trump warned that any country allowing its financial institutions, companies, airports or government bodies to provide support to Iran would face "TREMENDOUS Economic Consequences". He did not specify what penalties would be imposed or name any country other than Iran.
Trump said Washington would target activities including "oil smuggling, swap lines, cash transfers, exchange houses, ship registries" and "front companies".
Economic pressure alongside naval blockade
The announcement follows similar warnings from Treasury Secretary Scott Bessent, who said last week that Washington was preparing to intensify efforts to economically isolate Iran.
Bessent said the campaign would form part of a two-pronged strategy involving economic isolation and a US naval blockade.
The Treasury has already been pursuing sanctions against Iran under a campaign known as Operation Economic Fury, aimed at cutting off Tehran's sources of funding.
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Strait of Hormuz remains key flashpoint
The economic campaign comes as shipping through the Strait of Hormuz remains severely restricted. The conflict began on February 28 with US-Israeli attacks on Iran, followed by Iranian missile and drone strikes across the region.
The resulting security threat has sharply reduced commercial traffic through the strategic waterway.
Trump said Wednesday that US military efforts were helping ships move through the strait, claiming that "a lot of boats are coming through". Axios reported that US forces had been facilitating the movement of 15 to 20 ships each night in recent weeks, roughly half the pre-war daily oil shipment volume.
