Investing.com– U.S. President Donald Trump on Wednesday evening said Washington will impose more, strict economic restrictions on Iran, as the two countries remain at odds over the Strait of Hormuz.
Trump warned of “TREMENDOUS Economic Consequences” for any country engaging in business with Iran, although he did not specify just what the planned measures will entail.
“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 Truth.Social post.
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Trump said that Iran was “hanging by a thread” after months of U.S. operations against the country, and called on U.S. allies to join the effort.
“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,” Trump said, reiterating that Iran cannot have a nuclear weapon.
It was not immediately clear just what economic restrictions Trump planned to impose on Iran. The country is already subject to strict U.S. sanctions on its oil, while the U.S. has also blockaded its ports.
Iranian Foreign Minister Seyed Abbas Araghchi said Trump’s “so-called ’Economic D-Day’ is a diversion from America’s own crisis: unprecedented debt and surging interest costs.”
“Doubling down on failed policies will only bring further defeat,” Araghchi said in a social media statement.
Trump’s comments came as the U.S.-Iran deadlock in the Strait of Hormuz showed few signs of easing, with Iran stating that the waterway will remain closed until the U.S. adheres to the terms of an interim deal signed in June.
That deal, however, lapsed earlier this week, with neither party showing any willingness to renew the ceasefire agreement.
A host of reports said Trump planned to change his approach to the Iran war, opting for a long-term campaign of economic pressure over more military operations.
The Iran war was now set to enter a seventh consecutive month with no clear progress towards de-escalation. Trump had earlier this week threatened to bomb Oman over its discussions on Hormuz with Iran.
Hormuz remained a key point of focus in the standoff, with shipping data pointing to limited activity in the key waterway, despite U.S. claims that it was open.
The waterway supplied roughly 20% of the world’s oil prior to the Iran war, with its closure greatly disrupting global .