Trump says US starting 'economic warfare' operation against Iran

Derek Wallbank, Bloomberg News on Aug 19, 2026

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

WASHINGTON — The U.S. will begin what President Donald Trump said would be an unprecedented economic warfare operation against Iran, after faulting the country for failing to take its chance to make a deal with him.

“Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale,” Trump said in a social media post Wednesday.

Trump’s post didn’t specify the measures the U.S. would take. Iran is already subject to widespread U.S. sanctions, and the American military has sought to enforce a maritime blockade on the country.

The Trump administration has in recent weeks shifted from military options to economic pressure on Iran was the war drags on with negotiations deadlocked. Treasury Secretary Scott Bessent had openly warned the U.S. was preparing to unleash unprecedented measures to squeeze the Islamic Republic’s economy.

Trump said Wednesday the pressure campaign would extend to Iran’s trading partners, warning that “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 listed examples of aid to Iran that its economic partners should cease, including exchange houses, cash transfers and swap lines, ship registries, front companies and oil smuggling.

That firm red line could invite tough decisions for the Trump administration given Iran’s ties to China and test its appetite for going after entities tied to Beijing.

Oil held four days of gains, with West Texas Intermediate for October trading above $84 a barrel, while Brent closed near $92.

Trump’s announcement comes a day after the United Arab Emirates severed economic ties with Iran, citing “escalations that undermine regional and international peace and security.”

While U.S. allies have been reluctant to join the military campaign Trump and Israel began in late February, the president called on them to help choke off Iran economically.

“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,” he said.

_____

(With assistance from Jennifer A. Dlouhy and Magdalena Del Valle.)

_____