Iran accuses US of ‘economic war’ as Trump threatens tougher sanctions

Iran has accused the US of waging an “economic war” and warned that Washington’s latest pressure threatens global economic stability. The remarks came after President Donald Trump announced tougher economic measures against countries providing Iran with a lifeline.

Tehran: Iranian Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi said Wednesday 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.

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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.”

Iranian Foreign Minister Seyed Abbas Araghchi said Thursday that US “economic terrorism” threatens the global economy and the sovereignty of nations worldwide.

The remarks came after US President Donald Trump announced on Wednesday “the most crushing economic operation ever taken” against any country providing a lifeline to Iran, Xinhua News Agency reported.

“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. US economic terrorism threatens the global economy and sovereignty worldwide,” he added.

Trump has warned that Iran could face “very Draconian sanctions” even as he played down the Strait of Hormuz’s future importance, arguing that increased American energy production and new supply routes had reduced the world’s dependence on the strategic waterway.

“We have things that we could sanction. We have very Draconian sanctions, and we’ll see what happens,” Trump said at the White House when asked about possible new measures against Tehran.