Iran’s Foreign Minister has dismissed recent threats made by U.S. President Donald Trump, who announced intentions to launch an unprecedented economic operation against Iran. Abbas Araghchi criticized Trump’s plan as a diversion from America’s own financial challenges, emphasizing that persisting with failed policies will lead to more defeats and resentment from Iranians. Araghchi highlighted the global threat posed by the U.S.’s economic pressure tactics, labeling it as economic terrorism.

Trump’s declaration of imposing “Economic Warfare and Isolation on an unprecedented scale” against Iran came a day before Araghchi’s response. The U.S. president’s social media post warned nations about severe economic repercussions if they support Iran in any way, urging allies to stand with the U.S. for isolating and defeating the perceived Iranian threat.

Notably, China plays a significant role in Iran’s oil trade, purchasing over 80% of Iran’s shipped oil. However, escalating economic tensions with China could lead to retaliatory actions. China’s Foreign Ministry spokesperson emphasized the need for responsible actions and diplomatic solutions rather than resorting to sanctions and pressure tactics.

U.S. Treasury Secretary Scott Bessent hinted that emphasizing economic measures could reduce the necessity for major military interventions against Tehran. Following the U.S.’s threats of financial penalties, oil prices surged to a three-week high, reflecting market concerns about the ongoing conflict in the Middle East.

Dan Shapiro, a former U.S. ambassador, highlighted the risks of Trump’s aggressive stance towards Iran, noting the potential for Iran to retaliate and impact the global economy. Shapiro emphasized the need to avoid escalation and work towards a peaceful resolution, lamenting the current impasse in negotiations between the two countries.

The conflict between the U.S. and Iran has resulted in thousands of casualties, with peace talks failing to yield a lasting agreement. Despite the expiration of a 60-day negotiation period earlier this week, with no indication of an extension, Trump hinted at the possibility of future talks resuming at some point.