Donald Trump warned on Wednesday (08/19) of “devastating” economic consequences for “any country” that offers assistance to Iran, further intensifying the pressure Washington is exerting on Tehran, months after the war began with the American-Israeli strikes of February 28. “I am hereby announcing that any country that allows its financial institutions, businesses, airports, or government entities to provide any lifeline of any kind to Iran will itself face devastating economic consequences,” Trump stated via Truth Social.
In his post, Trump accused Tehran of failing to seize the “great opportunity” he had offered to reach a “deal” with him. “I am therefore announcing the most crushing economic warfare operation ever conducted against any country,” he continued, promising “economic war and isolation at an unprecedented level.” “Oil smuggling, currency swaps, liquidity transfers, money exchanges, ship registries, shell companies — all of this must stop now,” he added, in an apparent warning to countries he suspects of providing assistance — openly or covertly — to Iran. He did not, however, specify the exact measures or sanctions he intends to pursue.
Trump’s stern warning against Iran
Last week, U.S. Treasury Secretary Scott Bessent had already threatened Iran with economic isolation “the likes of which the world has never seen before.” Although hostilities have somewhat decreased in intensity, the situation in the Middle East remains highly tense after nearly six months of conflict.
Trump’s wait-and-see stance
Given the growing public and political discontent in the United States over the war, as well as declining stockpiles of critical munitions in the U.S. armed forces, Trump — who has long cultivated an image of unpredictability — appears to have recently adopted a more cautious, wait-and-see posture on the military front.
After absorbing the joint U.S.-Israeli attack launched on February 28, Tehran retaliated by targeting regional states allied with Washington, then proceeded to close the Strait of Hormuz — a critical waterway for global hydrocarbon trade. Washington responded by imposing a blockade on Iranian ports in the Gulf.
The UAE’s reaction
The United Arab Emirates accused Iran on Tuesday (08/18) of firing two ballistic missiles at their territory, which fell into the sea, targeting “international navigation.” Iran’s Foreign Ministry denied and “rejected” the accusation. In response, UAE diplomacy announced the immediate suspension of all “commercial exchanges” and “financial transactions” with Iran.
On the other side, “any assistance or facilitation provided to the attacking American military is equivalent to participation in American military operations,” Iranian Armed Forces Chief General Ali Abdullahi warned Gulf states, according to the MEHR news agency.
The two countries, separated by the Strait of Hormuz, share deep historical and cultural ties. Prior to the outbreak of war, the UAE was considered a significant trading partner for Iran, which has long been subject to sweeping American sanctions. Diplomatic efforts now appear to be at a standstill. “There are currently no discussions, no talks, and none are being planned with the Islamic Republic of Iran,” Trump emphasized on Tuesday.
The message from the other side
According to an AFP source in Washington, contacts have now been suspended and Trump has instructed his team to halt dialogue with Tehran for as long as Iran refuses to align with American positions.
The other side shows no sign of moving in that direction. Iran’s chief negotiator Mohammad Baqer Ghalibaf insisted on Tuesday that the Strait of Hormuz will not reopen as long as the American government fails to honor the commitments it made under the Islamabad memorandum of understanding, signed by the presidents of both countries in June. “The Americans think that if they push Iran harder, they can extract concessions that were never part of the agreement,” he wrote on X, adding that the Trump administration — which he dismissed as a “bunch of clowns” — cannot “pull a rabbit out of a hat.”
The preliminary agreement, which had called for a 60-day ceasefire and negotiations aimed at a lasting resolution, collapsed when hostilities resumed in July.
What Iran and Oman are discussing
Ghalibaf, who visited Baghdad on Wednesday, also condemned “foreign interference” as the U.S. government pressures the Iraqi administration to disarm powerful Iranian-aligned armed factions in Iraq, and called for “regional solidarity.” Meanwhile, Iran and Oman — on opposite sides of the Strait of Hormuz — have been engaged in talks for weeks over the future management of the strategic waterway.
The Islamic Republic, which has been targeting vessels attempting to transit the strait without its authorization, intends to impose transit fees for services rendered in the waterway — a move that has been categorically rejected by the United States and several oil-exporting monarchies in the region.
