Trump warns 'tremendous' punishment for Iran backers

President Trump announced a campaign to target Iran's economy, warning of "tremendous" punishment for any country that aids Tehran and vowing to isolate its backers.

The White House said the initiative aims to sever financial, trade and energy channels that it says sustain Iran, but offered few details on specific measures or timetables.

US campaign targets Iran

Officials said discussions have focused on restrictions that could hit banks, shipping companies and firms handling oil and petrochemical trade, and on measures to limit access to US markets and correspondent banking.

Sanctions specialists and trade lawyers say such tools commonly work through secondary penalties, limits on insurance and reinsurance for tankers, and constraints on dollar clearing; those mechanisms can raise costs for companies that keep commercial ties with Tehran.

Traders and energy firms will watch shipments from the Gulf and insurance flows for signs of disruption; even the prospect of tighter measures can prompt risk repricing in freight and oil markets, officials said.

Markets and governments will track whether the administration moves from threat to formal penalty lists by August 26, 2026; if sanctions are announced by that date, energy benchmarks and banks with Iranian exposure could see near-term price and risk adjustments.