US announces economic warfare against Iran, oil prices surge

US Treasury Secretary Scott Bessent said on Thursday that the US will impose "the toughest sanctions in history" on Iran, and the economic pressure is likely to prevent a kinetic restart on the battlefield.

His announcement came a day after US President Donald Trump posted that he is launching the "most crushing economic operation ever taken against any country," which consists of "economic warfare and isolation on an unprecedented scale." Iranian Foreign Minister Abbas Araghchi responded that "The so-called 'Economic D-Day' is a diversion from America's own crisis: unprecedented debt & surging interest costs.” Araghchi also called the US strategy "doubling down on failed policies," which "will only bring further defeat." Brent crude oil price rose sharply after the announcement, closing at $93.78 per barrel.