U.S. President Donald Trump has declared what he described as “economic warfare” against Iran, announcing a new escalation in Washington’s pressure campaign that sent oil prices close to $88 per barrel and weighed heavily on U.S. financial markets.
Speaking at the White House, Trump said the United States would intensify economic measures aimed at restricting Iran’s revenue and limiting its ability to finance activities Washington considers destabilizing. He pledged that the new strategy would impose “maximum economic pressure” on Tehran.
The announcement rattled global markets, with benchmark crude prices climbing toward $88 a barrel amid concerns that heightened tensions could disrupt energy supplies from the Middle East. Investors also moved away from riskier assets, pushing major U.S. stock indexes lower.
Analysts said fears of tighter oil supplies and the prospect of further sanctions on Iran contributed to the surge in energy prices, while concerns over inflation and slower global growth weighed on equities.
Iran has not immediately issued an official response to Trump’s latest remarks. Tehran has consistently condemned U.S. sanctions, describing them as unlawful and accusing Washington of using economic coercion for political purposes.
The latest measures come after months of heightened tensions between the United States and Iran, including disputes over maritime security, sanctions enforcement and regional military activities.
Economists warned that sustained increases in oil prices could place additional pressure on global inflation, raise transportation and manufacturing costs and complicate monetary policy decisions in major economies.
Market participants will closely monitor developments in the coming days for further details on the proposed measures and any response from Tehran, as the latest escalation adds fresh uncertainty to global energy markets and geopolitical stability.
