Trump warns of economic consequences for any country that supports Iran
Thousands of people have been killed in the war, which quickly drew in countries across the Gulf, and global markets have been shocked as Iran flexed its ability to control shipping through the Strait of Hormuz, through which about a fifth of the world's traded oil passed before February
Highlights:
- Trump does not specify steps US would take or name any country
- China buys more than 80% of Iran's shipped oil, Kpler data shows
- UAE suspends trade activities, commercial exchanges and financial transactions with Iran
President Donald Trump warned of economic consequences against any country that provided "any type of lifeline to Iran" as the US looks to resolve a war it began alongside Israel nearly six months ago.
Thousands of people have been killed in the war, which quickly drew in countries across the Gulf, and global markets have been shocked as Iran flexed its ability to control shipping through the Strait of Hormuz, through which about a fifth of the world's traded oil passed before February.
Keep updated, follow The Business Standard's Google news channel
The US and Iran have twice announced ceasefire agreements, in April and June, designed to restore the free flow of shipping through Hormuz to pre-war levels on the way towards ending the conflict, but both quickly crumbled even as Israel has largely withdrawn from the fighting.
In a message posted on social media on Wednesday evening, Trump promised "Economic Warfare and Isolation on an unprecedented scale", although details were scant. Iran has weathered continuous punishing economic sanctions for nearly 50 years, since the Islamic Revolution of 1979.
"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," Trump wrote.
Trump's social media threats and announcements do not always get fleshed out or successfully acted upon as written, and he did not specify what specific steps the US would take against such a country, which would appear to include US allies that have helped mediate peace talks, and he did not list any country by name.
On Tuesday, the United Arab Emirates, which hosts a major US military base, announced it was suspending all trade activities, commercial exchanges and financial transactions with Iran until further notice. The announcement came after the UAE defence ministry said it had detected two missiles launched from Iran that fell into the sea, a report Iran dismissed as baseless.
China buys more than 80% of Iran's shipped oil, according to 2025 data from analytics firm Kpler, but for the US to engage in further economic warfare with China, a major exporter to the US including of vital rare-earth minerals, risks retaliation.
Iran remains open to dialogue with the US but does not confuse negotiations with surrender, Mohammad Mokhber, an adviser to Iran's supreme leader, said on Tuesday, according to the semi-official Fars news agency. Mokhber said military pressure and sanctions would not break Iran's resolve.
On Tuesday, Trump said no talks were taking place with Iran. A day earlier, Jared Kushner, Trump's son-in-law and special envoy, struck an upbeat tone, saying talks with Iran were still underway and were "probably more robust" than ever.
Trump wants to seize Iran's stockpile of highly enriched uranium and is seeking a new, more restrictive agreement curbing Iran's nuclear energy and research programmes, to replace the one he unilaterally withdrew the US from in 2018. Iran, a non-proliferation treaty signatory, has for decades said its nuclear programmes are peaceful.
