Trump’s ‘Economic D-Day’ threat hits US markets first, not Iran
US stock and bond markets have become the first victims of President Donald Trump’s threatened ‘Economic D-Day’, aimed at imposing unprecedented economic pressure on Iran. As the war with Iran continues, Trump warned on Truth Social of new sanctions and a severe economic blockade. His remarks were followed by a sharp sell-off on Wall Street.
According to Al Jazeera, Trump warned that countries or institutions providing any economic assistance or trade benefits to Iran would face severe consequences. The US stock market subsequently suffered its biggest decline in three weeks. The Dow Jones Industrial Average fell more than 700 points, or 1.32%, while the S&P 500 also declined significantly.
Meanwhile, global crude oil prices rose above $93 a barrel. With shipping through the Strait of Hormuz halted, concerns over a global energy shortage and inflation are intensifying. Updated US Treasury data also showed that the country’s national debt has reached $40 trillion for the first time.
Economic analysts believe the threat of tougher measures by Trump is further aggravating the pressure that the war is already placing on the US economy. Domestic political pressure on the Trump administration is also mounting ahead of the midterm elections.
