US President Donald Trump has threatened to impose sweeping new economic penalties on Iran and on countries whose businesses or institutions continue to provide financial or commercial support to Tehran.
Trump announced the measures in a post on Truth Social, describing them as “the most crushing economic operation ever taken against any country”. He did not provide a detailed list of the measures or identify the countries that could be targeted.
The threat comes after a 60-day ceasefire between the US, Israel and Iran formally expired on Monday without a diplomatic agreement to end the conflict.
Iranian Foreign Minister Abbas Araghchi dismissed Trump’s announcement as a diversion and warned that continuing the pressure campaign would only deepen hostility towards the United States.
Trump Threatens Countries Doing Business with Iran
In his statement, Trump said Washington would impose severe consequences on any country that allowed its financial institutions, companies, airports or government bodies to provide Iran with what he described as a “lifeline”.
He specifically mentioned oil smuggling, financial swap arrangements, cash transfers, exchange houses, ship registries and front companies as activities that must end. However, Trump did not explain what penalties the countries involved would face.
The announcement signals a potential expansion of Washington’s existing sanctions campaign. One which has targeted companies and financial institutions accused of helping Iran generate revenue during the conflict. The US began imposing additional sanctions on foreign banks and businesses dealing with Iran in April, after military action failed to achieve Washington’s initial objective of forcing Tehran’s government to surrender or collapse.
UAE Cuts Financial Ties with Iran
The threat comes shortly after the United Arab Emirates announced that it would cut financial and economic ties with Iran. The UAE, a US ally, said the decision followed a new missile threat from Iran. Its defence ministry said it had detected two ballistic missiles launched from Iran towards maritime traffic, although both ultimately fell into the sea.
Iranian businesses and entities have historically used Dubai’s financial system to move money through exchange houses and shell companies. Following the UAE’s announcement, Iran’s armed forces warned neighbouring Gulf countries against assisting US military operations, saying countries that provided such support could be regarded as collaborators.
China Faces Potential Pressure
Although Trump did not name China in his post, Beijing could face significant pressure under any expanded sanctions regime. Chinese companies are among the largest buyers of Iranian oil, providing Tehran with an important source of revenue.
Washington has already targeted several privately owned Chinese oil refineries, sometimes referred to as “teapot refineries”, particularly those based in Shandong province. China has rejected such sanctions, with its Ministry of Commerce previously describing them as violations of international law and international relations.
Beijing has also said the sanctions should not be recognised, enforced or complied with.
Economic Pressure Follows Military Campaign
Trump’s latest threat represents another stage in the administration’s effort to weaken Iran economically after months of military confrontation. The US Treasury Department and Pentagon announced “Operation Economic Fury” in April, with the stated aim of reducing Tehran’s ability to finance its military operations by attacking its revenue sources.
The campaign also included a naval blockade intended to restrict Iranian exports. US Treasury Secretary Scott Bessent said last week that Washington would soon impose economic isolation on Iran on an unprecedented scale.
Trump’s administration is now under pressure to demonstrate that the economic campaign can produce results without creating further disruption to global energy markets.
Iran Rejects Trump’s Approach
Iran’s Foreign Minister Abbas Araghchi criticised Trump’s latest announcement, arguing that Washington’s strategy had already failed.
“Doubing down on failed policies”, he said, would only produce further defeat and greater hostility towards Iran. With the ceasefire now expired and diplomatic efforts showing little progress, Trump’s latest threat suggests that economic pressure will remain a central part of Washington’s strategy towards Tehran.
The immediate impact will depend on how widely the US applies the threatened measures and whether major trading partners comply with them.
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