International oil prices surged more than two percent on Thursday after U.S. President Donald Trump announced on Wednesday what he described as "the most crushing economic operation ever taken against any country" on Iran.
The price of Brent crude, the international benchmark, rose 2.4 percent to near 94 U.S. dollars a barrel on Thursday morning, its highest level since late July. In addition, West Texas Intermediate (WTI) crude futures, the U.S. benchmark, gained 2.5 percent to 86 U.S. dollars a barrel.
"This will be Economic Warfare and Isolation on an unprecedented scale," Trump posted on Truth Social, accusing Iran of failing to take the opportunity to make a deal.
"Today, 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 warned.
Trump specifically demanded an immediate halt to financial and commercial conduits. Calling the move "an ECONOMIC D-DAY," Trump urged allies to stand with the United States to "isolate, and defeat, the Iran threat."
While more oil is being transported out of the Middle East via other channels, the Strait of Hormuz remains largely shut, which is keeping energy prices high and adding to global inflationary pressures.
Official data published on Wednesday by the U.K. and the eurozone showed that both saw their July consumer price index (CPI) rise 2.9 percent year-on-year, partly fueled by higher energy prices.
Trump's threat of "most crushing" economic warfare on Iran spurs oil price rise
Iranian Foreign Minister Seyed Abbas Araghchi said Thursday U.S. "economic terrorism" threatens global economy and the sovereignty of nations worldwide.
The remarks came after U.S. President Donald Trump announced on Wednesday "the most crushing economic operation ever taken" against any country providing a lifeline to Iran.
"This will be Economic Warfare and Isolation on an unprecedented scale," Trump posted on Truth Social, calling the move "an ECONOMIC D-DAY."
In response, Araghchi said on X that the so-called "Economic D-Day" is a diversion from Washington's own crisis: "unprecedented debt and surging interest costs."
"Doubling down on failed policies will only bring further defeat -- and enmity of Iranians. U.S. economic terrorism threatens global economy and sovereignty worldwide," he added.
On June 18, Iran and the United States signed a memorandum of understanding (MoU) on ending their war in the region on all fronts. Under the MoU, the two countries were scheduled to hold negotiations within a period of 60 days, which ended on Monday, to reach a final agreement. However, the fate of the talks remains unclear following an escalation between the two countries last month.
Washington's anti-Tehran "economic operation" comes as Iran is already under U.S. unilateral sanctions and naval blockade.
Iranian Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi said Thursday that the United States is now further pressuring Iran under the label of an "economic war," which he views as an attempt to cover up Washington's previous failure.
Gharibabadi said in a social media post that while the United States claims Iran is "on the verge of collapse," it is reaching out to all its allies for help, Iran's official news agency IRNA reported.
To cover up its failure, the United States has to create an even bigger failure, Gharibabadi said, adding that the military war had failed to deliver results, and Washington was now calling the next defeat an "economic war."
Trump announced on social media Wednesday that the United States would launch "the most crushing economic operation ever taken against any country" against Iran.
Iran's Islamic Revolution Guard Corps (IRGC) has said the country will use more "devastating" weapons if a new war begins against it.
Following the 12-day and 40-day wars imposed against the country in June last year and late February by the United States and Israel, Iran has expanded its military capabilities, IRGC spokesperson Hossein Mohebbi said in an interview with Iran's Defa Press news agency, which was published on Thursday.
"If another war begins, our weapons will definitely be different ... in terms of the generation of missiles' warheads, as well as their precision and range," Mohebbi said.
The spokesperson emphasized that Iran has never stopped its armaments production, adding, "The destruction power of the warheads used in the IRGC's (new) missiles is far greater than the models used in the previous wars."
On Feb. 28, Israel and the United States launched joint attacks on Tehran and other Iranian cities, killing the country's then-Supreme Leader Ali Khamenei, military commanders and civilians. Iran responded with waves of missile and drone attacks targeting Israel and U.S. bases and assets in the region.
Iran's FM says U.S. "economic terrorism" threatens global economy, national sovereignty
