Trump Announces Economic War on Iran, Threatens Sweeping Sanctions

Welat TV – Erbil

US President Donald Trump announced what he described as “the toughest and strongest economic operation ever” against any country, saying the move aims to impose unprecedented economic isolation on Iran and cripple its ability to finance its activities.

In a post on Truth Social on Thursday, August 20, 2026, Trump said the United States had given Iran “a greater opportunity than ever” to reach an agreement, adding: “Unfortunately, they blew that opportunity.” He said Iran was facing an extremely difficult situation, citing damage to its military capabilities, economy, and currency, and describing the country as being “on the brink of collapse.”

Sanctions Targeting Iran’s Economy

Trump warned that any country allowing its financial institutions, companies, airports, or government entities to provide support to Tehran would face “severe economic consequences.”

He said the campaign targets activities including oil smuggling, currency exchanges, cash transfers, and exchange companies, as well as vessel records and shell companies, and called for such activities to be halted immediately.

Efforts to Isolate Tehran

Trump said the measures aim to eliminate Iran’s ability to finance its activities abroad, reiterating that “Iran will never have a nuclear weapon.”

He called on Washington’s allies to support the US measures and work to isolate what he described as the “Iranian threat.”

Fears of Regional Escalation

The measures come amid the ongoing war between Israel and Iran since late February 2026 and stalled diplomatic efforts to end the conflict, raising regional and international concerns over a wider escalation and its potential impact on regional security, energy markets, and the global economy.