# Trump Threatens ‘Tremendous’ Economic Punishment for Countries Doing Business with Iran
**WASHINGTON:** US President Donald Trump has announced a major new campaign to isolate Iran economically, warning that any country, financial institution or business providing support to Tehran could face what he described as **“tremendous” economic consequences**.
The announcement comes as the US-Iran conflict approaches its sixth month, with the **Strait of Hormuz remaining heavily disrupted** and no clear diplomatic or military resolution in sight.
Trump said the United States was launching what he called the **“most crushing economic operation ever taken against any country”**, describing it as economic warfare and unprecedented isolation of Iran.
He warned that countries allowing their financial institutions, businesses, airports or government entities to provide any form of economic lifeline to Iran would face severe repercussions.
Trump specifically called for an end to activities including **oil smuggling, financial swap arrangements, cash transfers, exchange-house operations, ship registrations and the use of front companies** to support Iran.
US Treasury Secretary Scott Bessent had similarly indicated last week that Washington was preparing to intensify efforts to economically isolate Iran. He described the strategy as part of a broader two-pronged approach involving economic pressure and a US naval blockade.
The US Treasury has already been pursuing a sanctions campaign, dubbed **“Operation Economic Fury,”** aimed at restricting Iran’s access to financial resources.
### Hormuz Disruption Raises Global Energy Concerns
The escalating economic pressure comes amid continued disruption to shipping through the **Strait of Hormuz**, one of the world’s most important energy transit routes.
The conflict began on February 28 with US-Israeli attacks on Iran, followed by Iranian missile and drone strikes against targets across the region. The resulting security situation has sharply reduced commercial shipping through the strategic waterway.
Trump nevertheless said US military operations were helping ships transit the strait, claiming that a significant number of vessels were currently moving through.
According to reports, US forces have been facilitating the movement of around **15 to 20 ships in and out of the Strait of Hormuz each night**, representing roughly half of the pre-war volume of daily oil shipments.
Although both Washington and Tehran have indicated in recent days that messages were being exchanged, Trump said on Tuesday that negotiations had ended. He also suggested that the strategic waterway could potentially become **“NEW US Territory.”**
### UAE Suspends Economic Ties with Iran
The economic pressure is also affecting Iran’s regional relationships. The **United Arab Emirates (UAE)** announced Tuesday that it was suspending economic dealings with Iran after saying it had come under attack from two ballistic missiles.
The UAE has historically maintained significant commercial and cultural ties with Iran and has been an important trading partner for the country despite longstanding US sanctions.
Trump has urged US allies to join Washington’s campaign against Tehran, saying they should work together to **isolate and defeat what he called the Iranian threat**.
The widening economic measures, combined with continued restrictions on shipping through the Strait of Hormuz, are likely to keep global energy markets under pressure and raise concerns over oil supplies, trade flows and transportation costs.
Story by Reuters
