US-Iran conflict: Trump threatens new Iran economic crackdown
Trump threatens Iran with new economic action as Hormuz tensions continue to grip the Gulf
The Middle East war enters another tense day as Washington steps up pressure on Tehran and uncertainty continues over the Strait of Hormuz. US President Donald Trump has threatened Iran with what he called an “economic D-Day”, warning of a sweeping new economic campaign against Tehran and consequences for countries or businesses that continue to support it. The warning comes as efforts to find a diplomatic way out of the conflict remain stalled. Iran’s military has meanwhile warned Gulf countries against helping US forces, saying states that allow their territory, airspace or waters to be used against Iran could face retaliation. The Strait of Hormuz remains a major source of uncertainty. Reuters reported on Thursday that many shipowners continue to avoid the waterway, despite Washington saying it is open, while Tehran maintains that it is blocked. Brent crude was trading around $91.87 a barrel in early Asian trading. Elsewhere, fresh Israeli strikes in Gaza have further complicated efforts to advance a ceasefire, with at least 17 Palestinians killed over two days, according to Gaza health officials. Follow our live coverage for the latest developments from across the region.
Six months into its war with the United States, Iran's military has begun signalling a shift from retaliation to offence, which analysts say could reflect Tehran's belief it holds leverage to advance its demands and break the stalemate.
Since US-Israeli strikes launched the war on February 28, Tehran has largely portrayed its strikes against the United States, Israel and Gulf countries as revenge for attacks on the Islamic republic.
Now, Iranian officials are openly talking about giving offensive operations a greater priority while keeping control over the strategic Strait of Hormuz, a key source of leverage against Washington that has disrupted a vital global energy route and driven up energy prices.
Iran's supreme leader Mojtaba Khamenei outlined that approach in a reshuffle of top military commanders earlier this month, calling for "strengthening maximum deterrence and preparing to conduct large-scale offensive operations against the enemy".
Earlier this month Iranian supreme leader Mojtaba Khamenei reshuffled Tehran's top security team, putting his own personal stamp on the appointments and readying the Islamic republic for a long-term confrontation with the United States.
Khamenei, in power since his father Ali Khamenei was killed at the start of the US-Israeli war against Iran in February, has yet to be seen in public since taking on the top job and his health and influence remain uncertain.
But on August 9 and 10 he filled key security posts -- many of which became vacant after previous incumbents were killed in the war -- with loyal, veteran figures hailing from the Revolutionary Guards (IRGC), Iran's ideological army, which has a long history of antagonism with the US.
The appointments are "indicative of the adoption of a more risk-ready, confrontational stance", said Jason Brodsky, policy director of the US-based United Against Nuclear Iran (UANI) think tank.
Britain said on Wednesday it had summoned Israel's charge d'affaires and demanded a halt to a major West Bank settlement project after Israeli authorities opened bidding for more than 1,200 homes in the area.
The E1 plan, green-lit by Israel last year, has drawn international condemnation, with the UN secretary general saying at the time that it posed an "existential threat" to a contiguous Palestinian state.
The project would further separate east Jerusalem, occupied and annexed by Israel and predominantly inhabited by Palestinians, from the West Bank.
A senior Iranian Revolutionary Guard figure has dismissed President Donald Trump as “short-sighted” and “childish,” saying he would place more faith in a taxi driver’s word than in the US leader’s statements — a pointed sign of the distrust now shaping Tehran’s approach to Washington.
Brig Gen. Mohammad Reza Naqdi, an adviser to the Islamic Revolutionary Guard Corps (IRGC), made the remarks in a video circulated widely online this week as tensions persist over US-Iran diplomacy, military pressure and the Strait of Hormuz.
“The current president of the United States is extremely short-sighted and childish,” Naqdi said. “He has no long-term vision.” He added that Trump’s statements had “no foundation or consistency,” arguing that “I trust a taxi driver much more than I trust him.”
Day 160: Tehran reshuffles military
Day 159: Netanyahu rejects Gaza plan
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