US President Donald Trump (Photo: AP)
US President Donald Trump has announced what he called the “most crushing economic operation” against Iran, warning countries and entities providing financial or commercial support to Tehran of “TREMENDOUS Economic Consequences”.
In a post on Truth Social on Thursday, August 20, Trump accused Iran of failing to seize opportunities to reach a deal with Washington and said the US would pursue “Economic Warfare and Isolation on an unprecedented scale”.
He said any country whose financial institutions, businesses, airports or government entities provide Iran with a “lifeline” would face economic consequences. Trump specifically called for an end to oil smuggling, swap lines, cash transfers, exchange houses, ship registries and front companies linked to Iran.
“This will be an ECONOMIC D-DAY,” Trump said, urging US allies to join Washington in isolating Iran. He also claimed that the measures would cripple Tehran’s ability to project power internationally.
Trump did not provide specific details of the new measures or identify the countries and entities that could face penalties. He also reiterated Washington’s opposition to Iran acquiring a nuclear weapon, declaring: “IRAN WILL NEVER HAVE A NUCLEAR WEAPON.”
The announcement came amid uncertainty over diplomatic efforts between Washington and Tehran. Trump said on Tuesday, August 18, that no talks or conversations were taking place with Iran and that none were scheduled. His comments came a day after his son-in-law and special envoy, Jared Kushner, said discussions with Iran were still underway and were “probably more robust” than ever.
The conflicting statements emerged as the 60-day ceasefire agreement reached under a memorandum of understanding signed on June 17 expired on Monday, August 17, without a broader deal. The agreement was intended to halt military operations and provide a framework for negotiations on Iran’s nuclear programme and US sanctions.
A major dispute has centred on the Strait of Hormuz, a key global energy route. The waterway has remained restricted during the conflict, complicating efforts to resolve the wider standoff between Washington and Tehran.
Trump has maintained that the Strait of Hormuz is open and that the US naval blockade has been effective, while Iranian officials have linked the reopening of the waterway to Washington fulfilling commitments under the June understanding.
The current conflict began on February 28, when US and Israeli forces launched joint strikes on Iran. The attacks killed several senior Iranian leaders, including Supreme Leader Ali Khamenei, who was 86 at the time. Iranian forces subsequently responded by targeting US and Israeli assets across the Middle East.
This post was last modified on August 20, 2026 10:13 am