Trump shifts focus to new sanctions as Iran talks stall
President Trump said the United States will increase economic pressure on Iran, calling the move “Operation Economic Fury,” as diplomatic talks remain deadlocked.
President Donald Trump announced on Monday that the United States will intensify financial sanctions against Iran, a strategy the administration has labeled “Operation Economic Fury.” The move comes after months of aerial attacks have failed to bring Iran to the negotiating table and as U.S. stockpiles of key weapons have dwindled.
Trump told reporters that Iran’s economy is on the brink of collapse, citing hyper-inflation and unpaid soldiers, and said the United States will seek compensation in any future peace agreement. Treasury Secretary Scott Bessent described the sanctions as the “financial equivalent” of the bombing campaign, targeting countries that purchase Iranian oil or conduct banking business with Tehran.
Iran’s foreign ministry spokesman Esmaeil Baqaei responded on social media, arguing that Washington’s reliance on sanctions reflects an inability to pursue diplomacy and warning that further measures could undermine any chance of a negotiated exit.
Experts noted that sanctions typically take time to affect a target economy and that the lack of a clear U.S. strategic objective complicates their effectiveness. Richard Nephew, a senior research scholar at Columbia University, said the administration has not articulated a consistent goal for the war, while former deputy national security adviser Juan Zarate emphasized that the ultimate test will be how far the United States is willing to restrict Iran’s oil trade and penalize third-party countries.
The sanctions come amid a sharp decline in Iranian oil exports, which the U.S. Treasury said have fallen from about 1.8 million barrels per day before the conflict to under 500,000 barrels per day in recent weeks. Crude oil prices rose after Trump’s comments, as investors anticipate reduced traffic through the Strait of Hormuz, a key chokepoint for global energy supplies.
Defense Secretary Pete Hegseth highlighted the United States’ economic strength, saying the Treasury can “pull a lot of levers” to pressure adversaries. The administration’s next steps remain unclear, but officials indicated that additional financial measures could be implemented in the coming weeks.