U.S. President Donald Trump speaks during a meeting with cryptocurrency executives in the Roosevelt Room of the White House in Washington, DC, on August 19, 2026.
Jim Watson | AFP | Getty Images
President Donald Trump said the United States had launched what he called “the most devastating economic operation ever waged against any country” against Iran and threatened to impose harsh economic sanctions on any country that helped Iran evade sanctions.
“This will be an economic war and isolation of unprecedented proportions,” President Trump said in a post on Truth Social.
“No one has given the Islamic Republic of Iran a greater opportunity to reach an agreement than I have,” he said, adding: “Tragically they were unable to reach an agreement.”
President Trump claimed that Iran’s navy, air force and military production facilities had been destroyed and its currency was worthless, and that his administration was in a “sweep.”
He said countries whose financial institutions, businesses, airports and government institutions provide a “lifeline” to Iran would face what he called a significant economic impact.
The president cited oil smuggling, currency exchange lines, cash transfers, currency exchanges, ship registries and front companies as routes he wants to shut down immediately, and stressed that Iran will never be allowed to acquire nuclear weapons.
The announcement is an extension of a pressure campaign the Trump administration has been conducting since April under the banner of “Operation Economic Fury” aimed at cutting off what it calls global terrorist financing and revenue sources.
Iranian Foreign Minister Abbas Araghchi accused the United States of escalating sanctions after previous rounds failed to bring Iran into submission, arguing the approach was a barrier to a negotiated exit from the conflict.
The escalation comes a day after the United Arab Emirates, one of Iran’s most important commercial partners, suspended all trade and financial transactions with Tehran after Iran announced it had launched two ballistic missiles toward the Gulf state. Iran denied launching the missile and called the claim a “false flag.”
Stock futures rose slightly following President Trump’s announcement, with the S&P 500 futures index up less than 0.1%.
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