US President Donald Trump on Wednesday, August 20 announced the toughest economic action ever against Iran. He warned of huge economic consequences for countries that provide financial aid or any kind of support to Iran. Trump said that this action would amount to economic warfare on an unprecedented scale and to isolate Iran. He said Iran’s economic supports such as oil smuggling, financial transactions, currency exchange houses and front companies would be targeted. This announcement has come amid increased tension between Washington and Tehran over the Strait of Hormuz. This waterway is included in the world’s major energy transportation routes. Warning to countries helping Iran, Trump wrote on the social media platform Truth Social, “No one gave the Islamic Republic of Iran a chance to make a deal more than me. Sadly, they did not accept it.” He further wrote, “So today I am announcing the toughest economic action ever taken against any country. It will be economic warfare and isolation on an unprecedented scale.” Trump claimed that Iran’s navy has been destroyed, its air force has been destroyed and military factories have been reduced to rubble. He also said that Iran’s currency has become worthless and the country is in a very weak situation. He said that any country that provides financial, trade, airport or government assistance to Iran will have to face huge economic consequences. Trump said, “Today I am also announcing that any country that allows its financial institutions, businesses, airports or government agencies to provide any kind of assistance to Iran will itself face very severe economic consequences.” Action on oil smuggling and financial networks Trump said that Iran’s economic support includes oil smuggling networks, financial transfers, currency exchange houses and front companies. He talked about stopping all these activities immediately. “Oil smuggling, swap lines, cash transfers, exchange houses, ship registration and front companies—all this must stop immediately,” he wrote. Trump described these steps as “economic D-day”. He appealed to American allies to support America in isolating Iran. “You know who you are. This will be economic D-Day and we need all of our allies to stand with the United States to isolate and defeat the Iranian threat,” he said. Trump claimed that these historic steps would weaken Iran and its ability to spread terror around the world. He described the people of Iran as “caught in a difficult situation”. Trump said – Iran will not get nuclear weapons. The US President again said that Iran will not be allowed to get nuclear weapons. “Iran will never have a nuclear weapon,” Trump said. Shortly before this, Trump had talked about imposing “very tough sanctions” against Iran. He had indicated that America could take further steps. On the question of possible sanctions on Iran, Trump had said, “We have options to impose sanctions. We have very tough sanctions and we will see what happens.” Trump’s claim regarding the Strait of Hormuz Trump said that the Strait of Hormuz is still open and many ships are passing through there. He described the American naval blockade as a complete success. “The strait is open now. Many ships are passing through there,” he said. Trump further said, “The naval blockade has been very effective. The blockade has been 100 percent successful.” He said oil prices have remained stable despite tensions over this key energy route. According to Trump, the price of crude oil did not reach the level that was earlier estimated. “People were talking about $350 a barrel, but today the price is $84 or $85. We are getting a lot of oil,” he said. Trump also mentioned increased oil production in US states like Texas, Alaska and Louisiana. He said dependence on the Strait of Hormuz has been reduced by alternative sources and new pipelines. “I think the Strait of Hormuz is no longer as important as it was before,” Trump said. Trump also raised the possibility of resuming talks. Earlier, Trump had described the situation with Iran as “very good”. He had also expressed the possibility of resuming talks with Tehran. He had said, “Maybe talks can happen at some point of time, but right now I think the situation is very good.” These developments have taken place amid increased tension between Washington and Tehran over the Strait of Hormuz. According to earlier reports, the US negotiating team was asked to stop talks with Iran. Reports said talks would be stalled until Tehran agreed to compromise. Trump had also said that no talks have been scheduled with Iran yet, although he had talked about the waterway remaining operational. Iranian speaker said – Strait will not open until conditions are met Iranian Parliament Speaker Mohammad Bagher Ghalibaf said that Tehran will not reopen the Strait of Hormuz until the commitments made by America under the 14-point agreement are fulfilled. This agreement includes lifting the blockade, releasing Iran’s frozen assets and relieving oil sanctions. The news is updating…
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