Donald Trump wrote again in capital letters as he announced a new strategy against Iran after six months of war. He announced on his “Truth Social” platform that he is planning the most devastating economic measures ever against a country, describing it as “economic war and isolation on an unprecedented scale,” and “economic victory day.”
Threats against countries that support Iran
The US President wrote: “You know yourselves.” Anyone who supports the "madman" in Tehran will face dire economic consequences. “Any country that allows its financial institutions, companies, airports, or government agencies to provide any type of support to Iran” should expect severe economic consequences. Trump did not specify the intended countries or the nature of these consequences. He may be referring to China, which still imports large amounts of oil from Iran. However, China has consistently proven that it is not easily influenced by US economic pressure, as happened in the trade dispute between the two sides, as the German Tagesschau website reports.
Trump's latest threat received an immediate response from Beijing: "Sanctions and pressure do not contribute to solving the problem," a Chinese Foreign Ministry spokesman said. All parties concerned must act responsibly and resolve the issue through political and diplomatic means.
What are the penalties?
Trump left the door open on what an “unprecedented economic war” against Iran might entail. As is known, the United States and other countries have imposed sanctions on Iran for a long time. It remains unclear what additional sanctions may be imposed. “Oil smuggling, currency swap agreements, money transfers, exchange offices, ship registries, shell companies - all of this must be stopped immediately,” Trump wrote, without specifying concrete measures. He called on US allies to provide support.
But US Treasury Secretary Scott Besent said on Thursday (August 20) that the United States would impose on Iran “the harshest sanctions in history,” calling on Beijing to cooperate with Washington. Besant added that he would hold a press conference on Monday to discuss the details. He explained to CNBC, "It's a double blow. We have the blockade on Iran, and we will impose the harshest sanctions in history. This will work in Iran and we will topple this regime." He went on to say, "It is time for our allies and the rest of the world to make a decision."
The Iranian economy is already suffering from severe weakness, but the strength of the regime in Tehran remains. The regime, in turn, has a very effective means of influencing the entire global economy: since the beginning of the current war, Iran has effectively closed the Strait of Hormuz, a vital strait for oil trade. This is essentially a problem that Trump himself created. Before the war on Iran, launched by the United States and Israel, the Strait of Hormuz was open to navigation. The blockade has caused oil and gasoline prices to rise significantly, including in the United States.
Iran is mocking
Iran's reaction was as expected, with indifference. The American president is "just trying to distract attention from his economic problems." Foreign Minister Abbas Araqchi, citing the historically high level of US debt, made the statement and claimed that US "economic terrorism" threatens the global economy. Iranian media have expressed similar positions, and of course they adopt the official position of the Iranian regime. Tasnim News Agency wrote that this “is not a new development, as the United States has been seeking for years to sever all financial and economic relations with Iran.”
However, Iran "has learned to circumvent these restrictions and has become adept at it." Fars News Agency reported that Trump had previously repeatedly spoken about Iran's alleged imminent collapse and strikes of historic proportions. The agency said that his allegations were nothing more than the usual "psychological warfare and propaganda campaign."
“A big announcement...but no strategy.”
In fact, since the beginning of the war, Trump has changed his rhetoric on Iran at an astonishingly rapid pace, often without the facts actually changing. He withdrew previously announced tariffs on the Strait of Hormuz after just one day. He threatened more than once to launch “major attacks” that never happened. His threat to stop trade with Spain because it does not support the war with Iran did not work.
In its analysis of Trump's latest threat, CNN wrote: It is the "last stunning turn" in a conflict that has seen countless tactical shifts and retreats. It remains to be seen whether he will back down again in the face of increasing political costs. Political scientist Sasha Lohmann stated a month ago in an interview with the German Tagesschau website that Trump's policies are "characterized by an absence of strategy." Perhaps it is more appropriate to view his threat of an “unprecedented economic war” in this context.
