US president warns that any country allowing its financial institutions, businesses to provide 'any type of lifeline' to Iran will face 'tremendous' economic consequences.

US President Donald Trump on Wednesday announced "the most crushing economic operation ever taken against any country,” escalating his campaign to isolate Iran and warning countries and companies that assist Tehran of severe economic consequences.

"No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. Tragically, for them, they have failed to take it. Therefore, today, I am announcing the most crushing economic operation ever taken against any country! This will be Economic Warfare and Isolation on an unprecedented scale," Trump said on his Truth Social platform.

The US would seek to cut off financial and commercial channels that provide Iran with economic support, he said.

"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," he added.

Trump specifically cited oil smuggling, financial swap lines, cash transfers, exchange houses, ship registries and front companies as activities that must end.

“It all needs to stop now,” he said.

The president also claimed that Iran's military capabilities had been severely degraded, saying: "Their navy is gone, their air force is destroyed, their military factories are now rubble."

He described Iran's currency as “worthless” and said the country was “hanging by a thread.”

Trump called the campaign an “Economic D-Day" and urged US allies to join Washington in isolating Iran.

“We need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” he said.

The president concluded by reiterating his administration's longstanding position on Iran's nuclear program.

“Iran will never have a nuclear weapon," he said.

Meanwhile, Iran's semi-official Tasnim news agency described Trump’s latest threat as a renewed version of a “failed” maximum-pressure campaign.

"Donald Trump, who throughout his presidency has pursued a policy of 'maximum pressure' against Iran, and after the failure of this policy resorted to military threats, has once again resorted to the tactic of 'economic warfare,' claiming to be declaring an 'economic war' against Iran," it said.

It argued that the US had already spent years attempting to restrict Iran’s financial and commercial ties with the outside world.

“Iran has learned to circumvent these restrictions and has become adept at doing so,” Tasnim said(AA)