Trump declares economic offensive against Iran and threatens secondary sanctions

Economic offensive and secondary tariff threats

United States President Donald Trump announced a secondary sanctions campaign against Iran, describing the policy on Truth Social as an economic D-Day. The initiative directs federal agencies to target third-country entities engaged in trade with Tehran, focusing on oil smuggling, foreign exchange lines, cash transfers, front companies, and vessel registries. Treasury Secretary Scott Bessent stated that Washington intends to force foreign governments to choose between their ties with Iran and access to the US market. The announcement follows earlier trade measures, including a January 2026 executive order establishing up to 25% tariffs on goods from nations purchasing Iranian crude and an April 2026 threat of 50% tariffs on arms suppliers.

This will be a combination of economic isolation like the world has never seen.

Pentagon munitions depletion and federal expenditures

The shift toward economic restrictions follows Pentagon reports that US precision missile stockpiles have dropped to minimal levels after six months of military operations. The joint campaign with Israel, designated Operation Epic Fury, began on 28 February 2026 with initial White House projections of a four- to five-week timeline. Defense Secretary Pete Hegseth reported to Congress that direct military expenditures reached 37.5 billion dollars, prompting requests for supplemental defense funding. A study by the Center for Strategic and International Studies estimated that broader expenditures, including munitions consumption and security deployments, exceed 100 billion dollars. Concurrently, US gross federal debt surpassed 40 trillion dollars, approximately 34.3 trillion euros, on 20 August 2026.

Iranian economic conditions and maritime blockade

Tehran continues to enforce a maritime blockade in the Strait of Hormuz, which has halted normal commercial navigation through the corridor since March 2026. Prior to the conflict, approximately 20 percent of global petroleum transit flowed through the waterway. Diplomatic mediation led to a 60-day ceasefire agreement in June 2026, but the truce collapsed within days and resulted in two weeks of direct US airstrikes and Iranian strikes against regional American bases. Domestically, Iran faces an annual inflation rate exceeding 80 percent, with prices for basic foodstuffs such as chicken climbing up to 190 percent alongside continuous currency depreciation.

International reactions and diplomatic resistance

Iranian Foreign Minister Abbas Araghchi rejected Washington's sanctions strategy, stating on social media that the economic measures serve as a distraction from US domestic debt and rising interest rates. Araghchi characterized the policy as economic terrorism and asserted that intensified pressure will result in further strategic failure for Washington. China, which buys over 80 percent of Iranian exported oil at discounted rates, similarly criticized the escalation. Chinese Foreign Ministry spokesperson Lin Jian reiterated Beijing's opposition to unilateral economic penalties during a press briefing.

Sanctions and pressure will not help resolve the problem. China urges all parties involved to take responsible actions and resolve the issue through political and diplomatic means.