Trump Threatens Iran with Economic War Amid Stalled Negotiations

US President Donald Trump escalated his rhetoric against Iran on Thursday, threatening an unprecedented economic war after negotiations with Tehran produced no visible results. In a post on Truth Social, Trump warned that any country — along with its financial institutions, companies, airports, and government agencies — that supports Iran will face "MASSIVE economic consequences." He urged all US allies to help stop the threat posed by Iran.

Iran dismisses the threat

Iranian media reacted with studied calm. The Fars news agency described Trump's warning as nothing more than "psychological warfare and propaganda," noting that the US president had previously made similar claims about Iran's imminent collapse without follow-through. Tasnim news agency added that Iran has "learned to circumvent these restrictions and is now very proficient at it," referencing years of US sanctions that have failed to force a policy change in Tehran.

Midterms pressure and a stalled war

The renewed rhetoric comes roughly two and a half months before the US midterm elections in November, with Trump under domestic political pressure. The Iran-US war, now about six months old, has produced few tangible wins for Washington: negotiations over reopening the Strait of Hormuz — which commercial ships once passed freely — remain deadlocked, and Iranian oil continues to flow mainly to China. The precise mechanism of Trump's threatened economic war remains undefined.

What is at stake

The Strait of Hormuz blockade is already affecting global energy markets and has contributed to economic difficulties in US regional allies such as the UAE. Trump's comments about countries that "support" Iran appear aimed primarily at China, which continues to purchase Iranian crude despite existing US pressure.