Iran-US war latest: Tehran accuses Trump of ‘economic terrorism’ after he vows to crush it with sanctions

Iran has accused US President Donald Trump of threatening "economic terrorism" after the US Treasury announced plans to impose "the toughest sanctions in history" against Tehran. Trump vowed "Economic Warfare and Isolation on an unprecedented scale", warning that any country aiding Iran—including financial institutions, businesses, or government entities—would face "TREMENDOUS Economic Consequences." He specifically cited oil smuggling, swap lines, and front companies as targets. US Treasury Secretary Scott Bessent reinforced this stance, urging allies to choose sides, stating, "We are going to collapse this regime. It is time for our allies and the rest of the world to make a decision." Iran’s Foreign Minister Abbas Araghchi responded by calling Trump’s threats a "diversion from America’s own crisis: unprecedented debt and surging interest costs." He warned that further sanctions would only deepen "further defeat and enmity of Iranians." Meanwhile, over 750 US military personnel have been injured since the conflict began, with 50 added to the Pentagon’s casualty list on Wednesday, bringing the total to 757 injured and 18 killed. Oil flows through the Strait of Hormuz have dropped significantly, with only seven vessels transiting on Thursday compared to 14 the previous day, according to Kpler data. No supertankers or LNG carriers passed through, though one gas carrier exited via Iran. The US also imposed fresh sanctions on Hezbollah, redesignating it as an Iranian-backed group, signaling broader US efforts to isolate Iran economically. Meanwhile, China, which buys over 80% of Iran’s oil, was pressured to align with US sanctions, with Bessent warning Beijing it relies on Gulf energy. China’s embassy rejected the approach, calling for "responsible actions through political and diplomatic means." Oil prices rose on concerns the US-Iran standoff would disrupt Middle Eastern supply, with Brent crude reaching $93.82 and WTI at $86.78. Despite a 60-day ceasefire agreement, oil flows through the Strait of Hormuz remained volatile, with flows nearly tripling before the deal expired. The US has also faced internal pressure, with Trump’s approval ratings affected by high fuel costs and potential midterm election risks.