IRAN DISMISSES U.S THREATS AS ECONOMIC WARFARE

Developing story: U.S. sanctions announcements, Iranian responses and regional enforcement actions may change the economic-pressure picture quickly.

Iran dismissed President Donald Trump’s latest threats of economic pain and isolation on Thursday, calling them failed policies and economic warfare as the post-deadline confrontation over the Strait of Hormuz continued. The Associated Press reported that Foreign Minister Abbas Araghchi said U.S. threats would stir more hostility among Iranians and bring more failures.

Trump had promised “economic warfare and isolation on an unprecedented scale,” according to the AP account, but provided few details about the measures under consideration. The statement came after the 60-day U.S.-Iran negotiating window expired without a final agreement and as Washington maintained pressure over shipping, sanctions and Iran’s regional network.

Araghchi responded by accusing Washington of using economic threats to distract Americans from domestic financial problems. He also said U.S. economic terrorism threatens the global economy and the national sovereignty of countries around the world. The rhetoric signals that Tehran is not treating the threat as a reason to soften its public position.

The exchange matters because the conflict has entered a phase in which economic pressure and maritime disruption are operating alongside military risk. The United States is trying to isolate Iran financially while demanding safer transit through Hormuz. Iran is rejecting the pressure while continuing to insist that shipping conditions depend on its demands being met.

The credibility of economic threats depends partly on enforcement. Sanctions can target oil sales, banking, shipping, insurance, ports, intermediaries and countries that provide Iran with commercial channels. But if sanctions are too broad or unevenly applied, they can also strain allies, global energy buyers and businesses that need clarity to avoid violations.

Iran’s response also comes after the UAE suspended trade and financial transactions with Iran following a missile alert that Abu Dhabi blamed on Tehran. Iran denied responsibility, but the Emirati response shows that regional governments are starting to impose their own economic barriers in addition to U.S. measures.

The domestic politics on both sides are sensitive. Trump faces voter anger over fuel prices and polling showing concern about a prolonged Iran conflict. Iranian leaders face inflation, sanctions and economic isolation. Each government therefore has incentives to blame the other for hardship while presenting pressure as a defense of national sovereignty.

What is confirmed is that Trump threatened intensified economic pressure and Iran publicly rejected the threats as failed tactics. What remains unresolved is whether Washington will announce specific new sanctions, whether Gulf states will deepen commercial restrictions and whether economic pressure brings diplomacy closer or pushes the conflict toward wider escalation.

Fact-check date: August 20, 2026. Article type: News. Sources: Associated Press. Developing note: U.S. sanctions announcements, Iranian responses and regional enforcement actions may change the economic-pressure picture quickly.