Trump’s ‘economic D-day’ against Iran risks driving the stakes even higher

Key Points:

• The Trump administration has launched "Operation Economic Outcast," aiming to isolate Iran economically by threatening sanctions on foreign entities that continue business with Tehran, intensifying pressure amid ongoing conflict.
• Iran's economy is severely strained by sanctions and a naval blockade, but Iranian leaders emphasize endurance and bargaining, refusing to capitulate while seeking a negotiated peace from a position of strength.
• Iranian officials have labeled participation in US sanctions as an "act of war," threatening to disrupt Gulf oil exports and increase regional pressure, signaling a strategy to make economic strangulation costly for Washington and its allies.
• China and other key players are resisting US sanctions, with Beijing warning against targeting Chinese interests, complicating Washington's efforts to enforce economic isolation without risking broader financial disruptions.
• The standoff represents a dangerous contest of endurance, with Washington betting on Iran's economic collapse and Tehran banking on US fatigue, raising concerns that the US may face higher energy prices and increased regional instability without a clear path to resolution.