U.S. President Donald Trump has warned that countries providing financial or institutional support to Iran will face severe economic consequences as Washington seeks to end the conflict involving Iran and Israel.
Trump issued the warning on Wednesday, threatening what he described as “Economic Warfare and Isolation on an unprecedented scale” against countries that help Iran.
“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 said in a social media post.
The warning comes as the conflict has killed thousands of people, drawn in Gulf states and disrupted global markets. Iran has also demonstrated its ability to restrict shipping through the Strait of Hormuz, a major global oil route that previously carried about a fifth of the world’s traded oil.
The United States and Iran have twice announced ceasefire agreements, in April and June, aimed at restoring the free flow of shipping through the Strait of Hormuz and creating a path towards ending the conflict. Both agreements, however, quickly collapsed, while Israel has largely withdrawn from the fighting.
Iran Faces Longstanding Sanctions
Iran has faced extensive economic sanctions for decades, dating back to the 1979 Islamic Revolution.
Trump did not provide details of the measures he plans to impose or identify specific countries that could face penalties. His warning could potentially affect U.S. allies involved in efforts to mediate between Washington and Tehran.
Iranian Foreign Minister Abbas Araqchi criticised Trump’s threat, accusing him of attempting to divert attention from domestic economic challenges in the United States, including record debt and rising interest rates.
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Araqchi said Washington’s continued reliance on what he described as failed policies would lead to further failures and alienate the Iranian people.
He also accused the United States of using economic pressure in a way that threatened the global economy and the sovereignty of other countries.
Trump has yet to achieve the objectives he set at the beginning of the conflict, including dismantling Iran’s nuclear programme, limiting its ability to attack regional rivals and creating conditions for Iranians to challenge the country’s clerical leadership.
China Calls for Diplomatic Solution
China has called for diplomacy rather than increased economic pressure on Iran.
Chinese Foreign Ministry spokesperson Lin Jian said sanctions and pressure would not resolve the conflict, urging all parties to pursue political and diplomatic solutions.
China remains a major buyer of Iranian oil, purchasing more than 80% of Iran’s shipped oil in 2025, according to data from analytics firm Kpler. Further U.S. economic pressure on China could risk retaliation because China is a major supplier of products, including critical rare earth minerals, to the United States.
The United Arab Emirates, meanwhile, announced on Tuesday that it was suspending trade activities, commercial exchanges and financial transactions with Iran until further notice.
The move followed a statement from the UAE defence ministry that it had detected two missiles launched from Iran that fell into the sea. Iran rejected the report as baseless.
Iran has maintained that it remains open to dialogue with the United States but will not equate negotiations with surrender.
Mohammad Mokhber, an adviser to Iran’s supreme leader, said military pressure and sanctions would not force Tehran to abandon its position.
Trump said on Tuesday that no talks were taking place with Iran, although his son-in-law and special envoy, Jared Kushner, said a day earlier that discussions remained underway and were “probably more robust” than ever.
Trump is seeking to secure Iran’s stockpile of highly enriched uranium and negotiate a more restrictive agreement covering its nuclear energy and research programmes. The proposed deal would replace the 2015 nuclear agreement, from which Trump withdrew the United States in 2018.
Iran, a signatory to the Nuclear Non-Proliferation Treaty, has maintained for decades that its nuclear programme is intended for peaceful purposes.
