Trump announces ‘economic D-Day’ against Iran, warns of secondary sanctions

In a dramatic escalation of U.S. policy toward Iran, President Donald Trump announced what he described as an “economic D-Day” aimed at isolating Iran economically on an unprecedented scale. Speaking emphatically, Trump warned that any country providing financial or logistical support to Iran would face severe economic consequences. This announcement comes amid a prolonged confrontation between the U.S. and Iran, characterized by sanctions and tension in the Strait of Hormuz. The threat of secondary sanctions marks a significant intensification of economic pressure, potentially affecting foreign banks and businesses beyond Iran itself. Markets have reacted swiftly to Trump’s announcement, with pricing in prediction markets indicating a decreased likelihood of a US-Iran deal that includes reconstruction funding in 2026. The odds for Iran Reconstruction Funding being part of such a deal dropped notably following the announcement, reflecting a market perception of hardened U.S. policy reducing the chance of diplomatic breakthroughs. This development is part of an ongoing narrative where negotiation efforts appear stalled, with tensions remaining high. The implications of Trump’s state...