Iran-US War Latest: Trump Threatens 'Economic D-Day' as Tehran Not Ready for 'Right Deal'

President Trump has declared an 'Economic D-Day' against Iran, warning countries providing any lifeline to Tehran will face severe consequences, as he says Iran is "not ready to make the right deal."

President Donald Trump has escalated economic warfare against Iran, declaring what he calls the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY" while asserting that Tehran is "not ready to make the right deal.” The threat comes as the US-Iran war nears its six-month mark without a clear military or diplomatic resolution.

"Today, I am also announcing that 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 wrote on Truth Social, warning that oil smuggling, swap lines, cash transfers, and ship registries "all needs to stop NOW" .

"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."

'American Territory' Claim Over Strait of Hormuz

At a rally in Myrtle Beach, South Carolina, Trump also declared that the Strait of Hormuz a critical chokepoint for 20 percent of global oil is now "American territory," stating: "I view the Strait of Hormuz as an American territory right now, it's an American territory" . He asserted that the US has "total control" over the region through its naval blockade.

Iran has rejected Trump's claim. Iranian Deputy Foreign Minister Kazem Gharibabadi warned: "Just as Trump correctly wrote the name of the eternal Persian Gulf, soon his delusion regarding the Strait of Hormuz will either be corrected or we will correct the delusions of this deluded man."

Economic Pressure as Military Alternative

Treasury Secretary Scott Bessent indicated that the economic campaign aims to negate the need for renewed large-scale military operations: "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart."  Analysts note the administration is signalling reluctance to return to war, which may embolden Iran.

Tehran's Response

Iranian Foreign Minister Abbas Araghchi dismissed the "Economic D-Day" as a diversion from America's own economic troubles: "The so-called 'Economic D-Day' is a diversion from America's own crisis: unprecedented debt & surging interest costs."  Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated Iran will not reopen the Strait of Hormuz until the US meets commitments under the 14-point memorandum, including lifting the blockade, releasing frozen assets, and easing oil sanctions.

Here is the question this escalation raises. President Trump has declared "Economic D-Day" against Iran while claiming the Strait of Hormuz as American territory. When economic warfare escalates alongside territorial claims over a critical global waterway, how will the international community and key allies respond?

FAQ:

Q: What is Trump's "Economic D-Day" against Iran?
A: Trump has announced the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN" against Iran, threatening severe economic consequences for any country providing financial or business lifelines to Tehran, including oil smuggling and cash transfers.

Q: Why did Trump claim the Strait of Hormuz is American territory?
A: At a rally in South Carolina, Trump declared the Strait of Hormuz "American territory" and said the US has "total control" over the region through its naval blockade, drawing sharp condemnation from Iranian officials.

Q: Does the US plan to resume large-scale military operations against Iran?
A: Treasury Secretary Bessent suggested the economic pressure campaign will likely negate the need for major military operations. "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart," he said.

Q: How has Iran responded to Trump's "Economic D-Day" threat?
A: Iranian Foreign Minister Abbas Araghchi dismissed the threats as a "diversion from America's own crisis," while Iranian officials rejected Trump's claim over the Strait of Hormuz and set conditions for its reopening, including lifting the blockade and easing sanctions .

Q: Is Iran willing to make a deal with the US?
A: Trump says Iran "would love to make a deal" but is "not ready to make the right deal." Iran has linked the reopening of the Strait of Hormuz to US compliance with the 14-point memorandum.