Trump’s ‘economic D-Day’ claims first victim: Not Iran, but US markets

United States President Donald Trump has threatened a crushing financial campaign against Iran, which he has referred to as “economic D-Day”, as the war on Tehran continues to drag on.

But on Thursday, the first casualty appeared to be US markets.

As US crude oil nudged up from its Wednesday closing price of $86.20 per barrel to $86.70, the US stock market made its worst losses in three weeks. Meanwhile, the US announced its total debt has surpassed a record $40 trillion this week.

Here’s what Trump has threatened and what the result has been so far.

In a post on Truth Social on Wednesday, Trump said Iran had “failed to take” the opportunity to make a deal, and would face “economic warfare and isolation on an unprecedented scale”.

He also threatened new sanctions against any country that does business with Iran.

“ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences,” he wrote.

On Thursday, Treasury Secretary Scott Bessent told CNBC again that this new “economic warfare” could include more secondary sanctions on other nations and companies that conduct business with Iran.