Trump has warned Iran trade partners that they may face severe economic penalties if they help Tehran. The warning marks a shift from US military action toward wider economic pressure.
Trump said the United States would launch what he called a major economic campaign against Iran. He said firms, banks, airports and state bodies that give Iran support would face “tremendous economic consequences.” He did not say what exact penalties would follow.
The warning comes as the conflict nears six months. The war has raised costs and added pressure on Trump as the US midterm elections draw closer. The White House has also faced questions over the use of US weapons and the results of the military campaign.
Trump paused US attacks on Iran last month after about two weeks of night strikes. The strikes did not bring Iran’s leaders back to talks. Reports also said US stocks of some key weapons had fallen. Pentagon advisers had told Trump that the US had used many of its main targets and that further strikes might have less effect.
The White House has since moved toward economic pressure. Treasury Secretary Scott Bessent said the US would step up efforts to isolate Iran. The Treasury has also used a sanctions drive known as Operation Economic Fury. Its aim is to cut Iran’s access to money.
The US has also sought to limit Iranian oil exports. Pressure around the Strait of Hormuz has added to that effort. Iran relies heavily on oil income, but years of sanctions have not ended its ability to sell oil.
Iran has found ways to work around the sanctions. It has used a network of hidden or poorly tracked ships to move oil. Trump said the new campaign would target oil smuggling, money transfers, exchange firms, ship registries and front companies.
The plan could put China in a difficult position. China is Iran’s biggest trading partner and a major buyer of its oil. If Washington imposes penalties on firms in other countries that trade with Iran, Chinese firms could be caught in the plan.
Gregory Brew, a senior analyst at Eurasia Group, said new US steps would likely need to focus on Iran’s trade partners. He also said it would be hard for Washington to target China, given its key role in Iran’s economy.
The timing may make the issue even harder. Chinese President Xi Jinping is expected to visit the US next month. Washington is also seeking a new trade relationship with Beijing.
Iran has rejected the idea that pressure will force it to give in. Mohammad Mokhber, an adviser to Iran’s supreme leader, said military action and sanctions would not break Iran’s resolve. He said Iran was still open to talks with the US, but would not treat talks as surrender.
The United Arab Emirates has also taken a new step. On Tuesday, the UAE said it would halt trade, business exchanges and financial deals with Iran. The move came after the UAE said it had detected two missiles launched from Iran. Tehran rejected the claim.
Before the war, the UAE was one of Iran’s main trade partners. It supplied more than 30% of Iran’s imports.
The Strait of Hormuz remains another key point of tension. Trump said ships from Gulf states allied with the US were still using the waterway. He said US forces were helping ships pass through the strait while Iranian oil exports remained under blockade.
A report said US forces had helped 15 to 20 ships pass through the strait each night in recent weeks. The report said the ships carried about half the oil volume seen before the war. Ship tracking data gave a more cautious picture and showed that traffic remained low.
Danny Citrinowicz, a former head of the Iran branch of Israeli military intelligence, called the US effort an important move. But he questioned how long it could continue.
He also said the operation was unlikely to make Iran surrender or change its position in talks.
Trump’s new threat now puts Iran’s trade network at the center of the conflict. It also raises the risk that economic pressure on Tehran could create a wider dispute with China.
