Washington vows sweeping sanctions against Iran
US President Donald Trump has vowed sweeping economic sanctions on Iran and its allies as the Middle East war rages on.
IMAGE: Flags of the US and Iran. Getty Images
Brent’s price has rallied following Trump’s announcement, as it effectively ended hopes of a swift de-escalation between both countries and restore commercial navigation through the Strait of Hormuz.
Trump said the US is launching its toughest economic measures against Iran, as well as any country that does business with Tehran.
Washington will target Iran’s oil trade, cash transfers, exchange houses, ship registries and front companies, the US President said.
“This will be Economic Warfare and Isolation on an unprecedented scale,” Trump wrote on social media platform Truth Social.
The announcement comes days after the US-Iran 60-day truce expired and Washington stepped away from any extension.
Both countries are further apart than they were two months ago, market analysts said.
In other news, the UAE has indefinitely frozen all trade with Iran, citing security risks after Iranian missiles struck Emirati waters.
“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 added.
Earlier this week, Trump warned of potential military strikes against Oman, should it proceed with an agreement with Iran to co-manage the Strait of Hormuz.
“Oil extended its rally for a fifth consecutive day after US President Donald Trump announced measures to intensify economic pressure on Iran,” two analysts from ING Bank noted.
By Aparupa Mazumder
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