UPDATED: Trump announces 'most crushing' economic sanctions on Iran

US President Donald Trump has announced that his administration was imposing the “most crushing economic operation” on Iran, a move analysts say shows the frustration of the American leader as his government makes no progress in the Iran war.

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In a post on Truth Social early Thursday, Mr Trump said the sanctions will target “any country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran.”

The US has imposed tough economic sanctions on Iran for over 40 years, and it remains to be seen how this new announcement will make any difference.

Mr Trump did not provide specifics on the nature of the expected US sanctions.

However, Iran’s Foreign Minister, Abbas Araghchi, dismissed Mr Trump’s latest threats in a post on X, calling it a “diversion from America’s own crisis: unprecedented debt & surging interest costs.”

He stated that the “so-called ‘Economic D-Day’” would only bring further defeat to Washington.

“Doubling down on failed policies will only bring further defeat—and enmity of Iranians. US economic terrorism threatens the global economy and sovereignty worldwide,” he wrote.

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The Iranian Parliament Speaker, Mohammad Ghalibaf, also said the US was seeking an “honourable exit” from the Middle East while promoting a “new regional order”.

Mr Trump’s announcement also comes less than 24 hours after the UAE, a US ally, said it was ending all trade and economic cooperation with Iran.

It accused the country of launching ballistic missiles at the Gulf nation this week, an attack Iran denied, saying it could have been a false flag operation by the US or Israel.

According to analysts, the UAE’s embargo is likely to significantly affect Iran, which relies heavily on its neighbour for critical imports and access to financial markets.

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The US war with Iran has now lasted almost seven months.

On Monday, the Iran-US MoU, signed on 17 June, expired. It marked the end of a 60-day deadline during which both countries were supposed to end the war and reach an agreement on Iran’s nuclear programme.

PREMIUM TIMES previously reported that Mr Trump demanded that Tehran “put up the white flag of surrender.”

He also threatened to make the Strait of Hormuz US territory.

“After we finish defeating Iran, which is being very badly defeated, I’ll be declaring the Hormuz Strait a territory of the United States,” Mr Trump said.