Trump warns of economic consequences for any country that supports Iran

WASHINGTON/DUBAI — U.S. President Donald Trump has warned that any country providing financial, commercial or logistical support to Iran could face severe economic consequences, escalating Washington’s pressure campaign against Tehran as the nearly six-month conflict continues to disrupt regional security, energy markets and international shipping.

Trump said the United States would pursue “Economic Warfare and Isolation on an unprecedented scale,” warning that countries whose financial institutions, businesses, airports or government entities provide any “lifeline” to Iran would face what he described as “TREMENDOUS Economic Consequences.” He provided few details about the specific measures that could follow.

Iran immediately rejected the threat. Foreign Minister Abbas Araghchi described Trump’s proposed economic measures as another failed policy that would increase hostility toward the United States rather than weaken Iran’s position.

Araghchi also accused Washington of using the threats to divert attention from economic problems inside the United States. He said U.S. “economic terrorism” threatens the global economy and the sovereignty of countries, according to the Associated Press.

The confrontation comes as Washington seeks to pressure Tehran into accepting restrictions on its nuclear activities and ending what the United States describes as Iranian regional aggression. Iran maintains that its nuclear program is peaceful and has continued to resist demands that it regard negotiations under pressure as a surrender.

The war, which began nearly six months ago with U.S. and Israeli attacks on Iran, has killed thousands of people and spread tensions across the Gulf. The conflict has also severely disrupted shipping through the Strait of Hormuz, a strategic waterway through which about one-fifth of the world’s traded oil moved before the war. Two ceasefire agreements, announced in April and June, have failed to produce a lasting settlement.

China, Iran’s largest oil customer, has urged the parties to resolve the conflict through diplomacy rather than additional economic pressure. Any expansion of U.S. secondary sanctions against companies or financial institutions doing business with Iran could therefore create further tensions between Washington and Beijing.

The United Arab Emirates has also taken steps to increase pressure on Tehran. The UAE announced the suspension of trade and financial transactions with Iran following accusations that missiles launched from Iranian territory targeted maritime activity. Iran has denied responsibility for the alleged attacks. The move could further strain Iran’s already weakened economy because the UAE has historically been an important trade and financial channel for Iranian businesses.

Pakistan is meanwhile attempting to help defuse the confrontation. Syrian Foreign Minister Asaad Hassan al-Shibani arrived in Islamabad on Thursday for talks expected to focus on the wider regional crisis.

Pakistani officials said the country’s political and military leadership remains in contact with both Iran and the United States as Islamabad seeks to encourage de-escalation and the resumption of negotiations. Pakistan previously helped broker a June memorandum of understanding involving regional efforts to reduce tensions.

The diplomatic effort comes as uncertainty persists over whether Washington and Tehran are actually negotiating. Trump has said that talks were not taking place, while his special envoy Jared Kushner has indicated that discussions remain active. The conflicting statements have added to uncertainty over whether another diplomatic opening is possible.

Elsewhere in the Middle East, Syria’s foreign minister’s visit to Pakistan follows Israeli airstrikes on a Syrian air base in the north. The strikes caused damage but no casualties, according to the Associated Press.

The situation reflects the broader regional spillover from the Iran conflict, with Syria, Lebanon, the Gulf states and Red Sea shipping routes all affected by the continuing instability.

Pakistan also repatriated the bodies of two Pakistani sailors killed in a Houthi attack last week on a Tanzanian-flagged commercial vessel in the Bab el-Mandeb Strait.

Six other Pakistani sailors injured in the attack have returned safely to Pakistan, Foreign Minister Ishaq Dar said. He thanked Saudi Arabia for assistance, including medical support, and condemned the attack while stressing the need to protect seafarers operating in the region.

The incident highlights the widening security risks facing commercial shipping in the Middle East. Alongside the disruption in the Strait of Hormuz, attacks around the Bab el-Mandeb Strait have added to concerns over the safety of vital maritime routes connecting the Middle East, Asia, Europe and global energy markets.

The continuing uncertainty has also pushed oil prices higher. Brent crude rose to around $93.90 a barrel on Thursday, while U.S. West Texas Intermediate crude climbed to about $86.72, according to the Associated Press. Investors remain concerned that prolonged restrictions around the Strait of Hormuz could further reduce global oil supplies and increase inflationary pressure.

For Iran, the latest U.S. threat adds to an already severe economic squeeze. Reuters reported earlier this week that Iranian authorities are increasingly concerned about the domestic economic and social consequences of additional U.S. pressure, including the possibility of renewed unrest as economic conditions deteriorate.

For Washington, however, the latest warning signals a further expansion of the pressure campaign beyond direct sanctions on Iran. By threatening countries and businesses that continue to provide Tehran with financial or commercial lifelines, the Trump administration risks widening the economic consequences of the conflict across the region and beyond.

With diplomatic efforts still uncertain, restrictions on shipping continuing and oil prices rising, the confrontation between Washington and Tehran remains a major source of geopolitical and economic risk for the Middle East and the global economy.