Overview
- The president announced what he called the “vernichtendste Wirtschaftsoperation” in a post that threatened heavy penalties for any country or company doing business with Iran, a move published Thursday that shifted U.S. strategy from military pressure toward economic coercion.
- Treasury officials said they will press allies to join the campaign and promised further, unspecified measures to be announced soon, signaling Washington will seek to use secondary penalties to choke Iran’s trade links.
- The United Arab Emirates has already suspended trade and financial transactions with Iran, and markets reacted immediately with Brent crude jumping about 2–3 percent as shipping and oil flows around the Strait of Hormuz remain disrupted.
- Iran formally rejected the plan as “economic terrorism” and a violation of international law, and U.S. military command reports that dozens of merchant ships have been diverted and several vessels disabled or seized in maritime enforcement operations.
- Experts warn the squeeze will be slow and costly because Iran has long used China, Dubai and shadow shipping and finance networks to evade sanctions, and a tougher economic campaign risks prolonged global effects on energy, fertilizer and shipping costs as well as legal and diplomatic conflicts.