Trump Unveils Economic Warfare Plan Against Iran Amid Ongoing Oil Price Rally

Oil prices held onto their four-day gains on Thursday following US President Donald Trump's announcement of a fresh package of measures to crush Iran's economy. The global benchmark Brent traded below $92 a barrel, up from its prior four sessions' gain of over 5%. West Texas Intermediate (WTI) for October was near $84.

In his social media post, Trump said the moves 'will be economic warfare and Isolation on an unprecedented scale.' He warned that any country allowing financial institutions, businesses, airports, or government entities to aid Iran would face tremendous economic consequences. Activities such as smuggling, cash transfers, exchange houses, and ship registries needed to be halted, he wrote.

The Trump administration's latest push to defeat Iran risks inflaming tensions with takers of Iranian crude, including its main market China. The US has shifted from military options against Iran to economic pressure in recent weeks, with US forces sustaining a naval blockade of the Islamic Republic's ports. Some crude is being covertly ferried out through Hormuz despite threats to shipping.