{"id":257733,"date":"2026-08-20T13:49:24","date_gmt":"2026-08-20T13:49:24","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/257733\/"},"modified":"2026-08-20T13:49:24","modified_gmt":"2026-08-20T13:49:24","slug":"trump-threatens-to-crush-iran-with-economic-d-day-but-he-is-running-out-of-cards-to-play","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/257733\/","title":{"rendered":"Trump threatens to crush Iran with \u2018Economic D Day\u2019 – but he is running out of cards to play"},"content":{"rendered":"

Your support helps us to tell the story<\/p>\n

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.<\/p>\n

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.<\/p>\n

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.<\/p>\n

Your support makes all the difference.Read more<\/p>\n

President Donald Trump<\/a> has issued another economic threat <\/a>against Iran,<\/a> vowing \u201cTREMENDOUS Economic Consequences\u201d for any country that trades with Tehran<\/a>. <\/p>\n

In another rant on Truth Social on Wednesday, he wrote: \u201cANY 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.<\/p>\n

\u201cThis 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.\u201d<\/p>\n

Tehran\u2019s foreign minister Abbas Araghchi said that the threats would only bring Trump \u201cfurther defeat\u201d as he struggles to find an exit strategy from an unpopular war. <\/p>\n

\u201cThe so-called \u2018Economic D-Day\u2019 is a diversion from America’s own crisis: unprecedented debt & surging interest costs,\u201d he wrote in a post on X on Thursday, alongside screenshots of news headlines and graphs about America\u2019s economic troubles. <\/p>\n

\u201cDoubling down on failed policies will only bring further defeat\u2014and enmity of Iranians. US economic terrorism threatens global economy and sovereignty worldwide.\u201d<\/p>\n

\"PresidentPresident Trump’s legacy is tied up in the war with Iran, a former Fox News host says (AP)<\/p>\n

What kind of sanctions could Trump impose?<\/p>\n

The US had agreed to lift sanctions<\/a> on sales of Iranian oil for the duration<\/a> of a 60-day ceasefire that expired on Monday, but these were reimposed after the deal collapsed amid disagreement over the Strait of Hormuz last month. <\/p>\n

For decades, it has imposed measures such as freezing assets, implementing trade embargoes and applying sanctions against Iran over issues such as its nuclear development and human rights violations. <\/p>\n

Since the war, Washington has also imposed a naval blockade, restricting Iranian oil exports as well as levying additional maritime and energy sanctions since the war broke out. <\/p>\n

Trump could escalate the situation by imposing secondary sanctions on third parties. However, he is limited in what he can enforce, say experts. <\/p>\n

\u201cThe most likely step is tighter enforcement of secondary sanctions against companies, banks, insurers and shipping operators involved in Iranian oil exports,\u201d says Dr Neil Quilliam, an energy policy, geopolitics and foreign affairs specialist, at Chatham House. <\/p>\n

\u201cThe aim would be to make it more difficult and costly for third parties to do business with Iran, even if they are not based in the US.\u201d<\/p>\n

This is in line with what Trump has threatened, but Dr Quilliam says that even this could prove ineffective if the measures do not extend to China<\/a>. <\/p>\n

\"AA drone view shows vessels in the Strait of Hormuz, as seen from Musandam, Oman, June 15, 2026. (Reuters)<\/p>\n

Could these sanctions have any impact on Iran\u2019s economy?<\/p>\n

Iran appears to have profited from the outbreak of conflict, with the country\u2019s semi-official Fars news agency reporting that the country generated $7.5bn in oil revenues over the first four months of the year. <\/p>\n

Citing the Iranian oil ministry, the agency said that this marked a revenue that is 1.5 times larger than the amount generated in the same period last year and is expected to cover the government\u2019s foreign currency expenses for the rest of the year. These figures could not be independently verified. <\/p>\n

Iran has developed ways to circumvent the worst impact of sanctions, including the use of shadow fleet tankers, floating storage and the use of alternative ports<\/a>. <\/p>\n

Dr Quilliam says that while further sanctions could increase pressure on Iran\u2019s economy, alone they are unlikely to be decisive. <\/p>\n

\u201cIran has spent years building networks to evade restrictions and has become adept at finding alternative routes to market,\u201d he says. <\/p>\n

\u201cThe greater challenge for Tehran would come if Washington succeeded in reducing demand for Iranian oil rather than simply targeting supply.\u201d<\/p>\n

\"TanksTanks are seen at a Sinopec Company oil and LNG storage and transportation base in Longkou, Shandong province, eastern China, on August 2, 2026. (AFP\/Getty)<\/p>\n

Why China is so important<\/p>\n

He says that the key issue here is China, which purchases 80 per cent of Iran\u2019s oil. <\/p>\n

\u201cThe US has repeatedly identified Chinese entities as facilitators of Iranian oil exports, but applying penalties on a large scale could have wider economic and diplomatic consequences.\u201d<\/p>\n

Iran has attempted to dodge the effects of this by offering discounts to Chinese companies. <\/p>\n

\u201cThe credibility of Trump’s threat will depend on whether he is prepared to target major buyers as well as Iran itself,\u201d continues Dr Quilliam. <\/p>\n

\u201cThe bigger question is whether Washington is willing to bear the economic and diplomatic costs of targeting major buyers, especially in China, as well as close allies, such as the UAE, which remains a key node in capital flows for Iran, though cut financial ties on Tuesday. <\/p>\n

\u201cThat is where rhetoric meets reality. There are also so many areas where the oil and\/or money is moved – Iraq, UAE, Malaysia, overground routes Pakistan, T\u00fcrkiye, Central Asia – so there is a lot to capture.\u201d<\/p>\n

\"Iran'sIran’s Foreign Minister Abbas Araghchi has said that attempts to impose further sanctions would spell \u2018further defeat\u2019 for the US as he mocked the state of the country\u2019s economy (AFP\/Getty)<\/p>\n

Should Trump\u2019s threat be taken seriously?<\/p>\n

Trump has developed a notorious reputation for issuing stern threats before later reneging on them – earning him the infamous \u2018TACO\u2019 nickname (Trump Always Chickens Out) on Wall Street. <\/p>\n

But despite this, Dr Quilliam says that the repercussions of sanctions on Iran could still be dire. <\/p>\n

\u201cTrump’s threat should be taken seriously, but its effectiveness depends on enforcement,\u201d he says. <\/p>\n

Secondary tariffs have been struck down by the Supreme Court on numerous occasions. Nevertheless, Trump could still sanction smaller \u201cteapot\u201d refineries in China that account for around 25 per cent of Chinese refinery capacity, sanction Chinese banks and impose a land blockade.<\/p>\n

Last week, the Senate passed a Russia sanctions bill that included new Iran sanctions and could give Trump new tariff powers that he could potentially use against countries that aid Tehran\u2019s commerce and weapons procurement.<\/p>\n

But the legislation must still pass the U.S. House of Representatives, which could prove challenging given widespread concerns across both parties about the measures. Treasury secretary Scott Bessent said that the US would impose measures on Tehran that have “never been seen” before. <\/p>\n

\u201cThe US can aim to tighten pressure on Iran’s oil exports and the commercial networks that support them but the timelines for implementing complex sanctions like this are lengthy, and impact would be far from immediate.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The…\n","protected":false},"author":2,"featured_media":257551,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[3],"tags":[6387,25439,154,5084,3764,34,1023],"class_list":["post-257733","post","type-post","status-publish","format-standard","has-post-thumbnail","category-iran","tag-art","tag-arts-culture-and-entertainment","tag-energy","tag-horizontal","tag-human-interest","tag-iran","tag-sport"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/117128158856704352","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/257733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=257733"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/257733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/257551"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=257733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=257733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=257733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}