Trump Declares ‘Economic D-Day’ Against Iran

The war between the two countries, started by the U.S. and Israel in February, appears stalemated, with peace talks stalled, Tehran keeping the key Strait of Hormuz shut and Washington persisting with a naval counter-blockade of Iran.

Under pressure at home over the economic impacts of this unpopular war and with midterm elections looming, Trump appeared to be searching for alternative ways to pressure Tehran.

In a post on his Truth Social, the U.S. leader said he was announcing “the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale.”

“This will be an ECONOMIC D-DAY, and we need all of our allies to stand with the United States of America to isolate and defeat the Iran threat.”

“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.

In his threat to those helping Iran, Trump did not mention any country by name, nor did he say what punishment third countries might face, although last August, the U.S. slapped an additional 25 percent tariff on India for buying Russian oil.

The U.S. leader listed several activities that he said needed to stop immediately: “Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies.”

The U.S. has maintained punishing sanctions against Iran for decades, with Trump in his 2017-2021 first term ratcheting them up as part of a “maximum pressure” strategy in which he tore up a nuclear deal negotiated by his predecessor Barack Obama.

Iran’s Foreign Minister Abbas Araghchi on Aug. 20 dismissed the plan as a continuation of “failed policies”, which he said would bring Washington “further defeat.”

“The so-called ‘Economic D-Day’ is a diversion from America’s own crisis: Unprecedented debt & surging interest costs. Doubling down on failed policies will only bring further defeat and enmity of Iranians,” Araghchi said in a post on X.

“U.S. economic terrorism threatens global economy and sovereignty worldwide.”

Despite the heavy international sanctions, Iran found ways to continue exporting its oil, with China the biggest buyer.

Like Russia, Tehran operates a so-called shadow fleet of tankers, all of which are under international sanctions, to continue its oil trade.

It’s unclear what additional impact any fresh sanctions would have, given the U.S. blockade of Iranian ports.