Iran rejects Trump's threat of 'economic warfare' on 'unprecedented scale'

Iran rejects Trump's threat of 'economic warfare' on 'unprecedented scale'

Iranian foreign minister says Trump's threat 'will only bring further defeat'

The Iranian foreign minister has rejected the latest threats from U.S. President Donald Trump, who this week said he planned to launch the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN" against Iran.

Abbas Araghchi said in a post on X on Thursday that Trump's "so-called 'Economic D-Day' is a diversion from America's own crisis: unprecedented debt & surging interest costs."

"Doubling down on failed policies will only bring further defeat—and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide," Araghchi said.

The remarks came a day after Trump said he planned to unleash "Economic Warfare and Isolation on an unprecedented scale" against Iran, citing a failure to reach a lasting deal to end the months-long war.

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The U.S. president's Truth Social post also warned countries of "TREMENDOUS Economic Consequences" if they "provide any type of lifeline to Iran."

"This will be an ECONOMIC D-DAY, and we need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat."

Trump did not name any countries specifically, nor say what specific steps the U.S. would take.

China buys more than 80 per cent of Iran's shipped oil, according to 2025 data from analytics firm Kpler, but for the U.S. to ⁠engage in further economic warfare with China risks retaliation.

Asked about Trump's economic threats during a press briefing on Thursday, Chinese Foreign Ministry spokesperson Lin Jian told reporters that "sanctions and pressure tactics are not the solution."

"China calls on parties to act responsibly and stick to the political and diplomatic approach," Lin said.

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U.S. Treasury Secretary Scott Bessent suggested later Thursday that a focus on economic measures would lessen the need for new major military operations against Tehran.

Oil prices rose to their highest level in more than three weeks on Thursday following those U.S. threats of financial penalties aimed at forcing an end to a nearly six-month-old war that has stranded millions of barrels of Middle Eastern oil.

"I'm not sure why oil has popped up on this," Bessent told CNBC. "If we are doing the maximum economic pressure, ​then that means that likely there will not be a large-scale kinetic restart," he said, using a ​term referring to military force.

Dan Shapiro, a former U.S. ambassador to Israel and distinguished fellow at the Atlantic Council, said Trump's threat "ignores … that Iran has both willingness to absorb the pain and tools to impose pain on the United States, its partners, and the world economy."

"Whether Trump pursues a military or an economic escalation, he never seems to get that the escalation is not one way, that Iran has agency. And then, as US partners come under attack and gas prices rise at home, he will feel pressure to scale back the escalation and try once again to reach a deal," Shapiro wrote on X.

"We are stuck in a cul-de-sac of our own making."

Iran has faced crippling economic sanctions for decades, including a series of curbs put in place by the Trump administration since it launched the war against Iran in February.

Thousands of people have died in the conflict as negotiations to reach a lasting peace agreement have faltered.

A 60-day negotiating period to find a peace deal between the two countries expired earlier this week, with no word of an extension and both sides seemingly as far apart as they were at the start.

Trump told reporters on Wednesday that talks may resume "at some point," U.S. media outlets reported.

Jillian Kestler-D'Amours is a senior writer at CBC based in Montreal. You can reach her at jillian.kestler-d.amours@cbc.ca.