US-Iran conflict: Trump threatens economic crackdown as Iran warns of ‘further defeat’

Iranian Foreign Minister Abbas Araghchi said the so-called “Economic D-Day” is an attempt to divert attention from what he described as an economic crisis in the United States.

In a post on X, Araghchi pointed to rising US debt and interest costs, arguing that continuing what he called failed policies would lead to further setbacks and deepen hostility among Iranians.

He also accused Washington of practising “economic terrorism”, saying US policies threaten the global economy and the sovereignty of countries worldwide.

US President Donald Trump has expressed dissatisfaction with South Korea over its unwillingness to assist Washington in securing the Strait of Hormuz, whilst questioning the conduct of large-scale joint military manoeuvres targeted at North Korea, a development underscoring friction over burden-sharing and regional security dynamics.

Speaking to reporters at the White House, Trump highlighted his displeasure regarding Seoul's response when approached for maritime security assistance in the crucial energy passageway. "I was not happy when South Korea said, no, they're not interested in helping us with the Hormuz Strait, and yet they get 60 per cent of their oil from the Hormuz Strait," Trump said.

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 168: US-Iran conflict: Trump says Iran situation is ‘so good

Day 167: Trump says no talks planned; UAE detects Iranian missiles

Day 166: Israel strikes Lebanon; Oman holds Hormuz talks

Day 165: US-Iran tensions rise over Trump’s Hormuz claim

Day 164: Iran demands faster US exit from Middle East

Day 163: 2 ADNOC vessels attacked in Hormuz; no injuries

Day 162: Trump says US has ‘total control’ of Strait of Hormuz

Day 161: Tehran: Hormuz stays shut as US-Iran diplomacy push continues

Day 160: Tehran reshuffles military