{"id":221558,"date":"2026-08-22T08:10:20","date_gmt":"2026-08-22T08:10:20","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/trumps-economic-d-day-claims-first-victim-not-iran-but-us-markets-al-jazeera\/"},"modified":"2026-08-22T08:10:20","modified_gmt":"2026-08-22T08:10:20","slug":"trumps-economic-d-day-claims-first-victim-not-iran-but-us-markets-al-jazeera","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/trumps-economic-d-day-claims-first-victim-not-iran-but-us-markets-al-jazeera\/","title":{"rendered":"Trump\u2019s \u2018economic D-Day\u2019 claims first victim: Not Iran, but US markets – Al Jazeera"},"content":{"rendered":"

The US and Israel\u2019s war on Iran has upended global financial and energy markets.<\/em>
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United States President Donald Trump has threatened a crushing financial campaign against Iran, which he has referred to as \u201ceconomic D-Day\u201d, 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\u2019s what Trump has threatened and what the result has been so far.
In a post on Truth Social on Wednesday, Trump said Iran had \u201cfailed to take\u201d the opportunity to make a deal, and would face \u201ceconomic warfare and isolation on an unprecedented scale\u201d.
He also threatened new sanctions against any country that does business with Iran.
\u201cANY 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,\u201d he wrote.
On Thursday, Treasury Secretary Scott Bessent told CNBC again that this new \u201ceconomic warfare\u201d could include more secondary sanctions on other nations<\/a> and companies that conduct business with Iran.
The latest Trump administration rhetoric comes as the critical Strait of Hormuz in the Gulf remains closed to shipping, upending global energy and financial markets. Before the war, some 20 percent of global oil and natural gas supplies were shipped through this waterway.
The war is increasingly becoming unpopular within the US as the costs of petrol and other living expenses rise.
On Wednesday, Tehran dismissed Trump\u2019s threats, with Foreign Minister Abbas Araghchi calling the so-called \u201ceconomic D-Day\u201d a \u201cdiversion from America\u2019s own crisis\u201d.<\/p>\n

The US and Israel\u2019s war on Iran has paralysed the Strait of Hormuz, the only route to the open ocean through which Gulf oil producers can ship their exports. Before the war, some 130 ships passed through the strait each day. Now barely a handful get through. This has hugely unsettled the global energy and financial markets.
Following Trump\u2019s economic threats against Iran on Wednesday, global crude oil prices rose to nearly a one-month high on Thursday morning with Brent crude \u2013 the global benchmark \u2013 topping $93 a barrel. On Friday morning, the price of Brent remained at $93.28 a barrel.
In the US, US crude oil climbed to $86.70 per barrel on Thursday. On Friday morning, it was trading at about $86.20.
Meanwhile, US stock markets made their worst losses in three weeks.
The Dow Jones Industrial Average shed 703.84 points, or 1.32 percent, closing at 52,759.21 on Thursday evening. The S&P 500 lost 0.87 percent, closing at 7,641.16.
On Friday morning, US indices showed signs of stabilising.
Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, noted that the 30-year US Treasury yield pushed above 5.25 percent, close to a two-decade high after Trump\u2019s announcement. This indicates that the price of US bonds is falling as investors avoid them, signalling a lack of confidence in the US.
Bessent announced an emergency move to double the Treasury\u2019s buybacks of long-dated debt to at least $4bn, but this did not calm the market.
\u201cThis is a strong signal, as the world\u2019s most powerful treasury had to reach for extraordinary measures and failed to calm the market,\u201d Schneider told Al Jazeera.
\u201cLong-dated Treasuries have faced a \u2018buyers\u2019 strike\u2019 since June, driven by a widening federal deficit, a wave of AI-related corporate borrowing, and now an oil-price inflation premium layered on top,\u201d he added.
Yes. Analysts say both Iran and the US have been feeling the economic pressure of Washington\u2019s war on Tehran.
Schneider told Al Jazeera: \u201cThe \u2018economic war\u2019 keeps the Strait of Hormuz shut, which keeps oil [prices] elevated. The US Energy Information Administration does not expect Gulf output to recover to near pre-conflict levels until early 2027, and the shortage is fanning American inflation, which feeds into the bond market, which is where the real damage is now showing.\u201d
He added that the war has shone a light on the US\u2019s vulnerabilities, despite having its own oil industry capable of providing for its needs.
\u201cThe US is technically energy self-sufficient, but it is not insulated. Petrol prices and cost of living in general are a core topic in a midterm election year. But the Federal Reserve cannot cut rates to support a slowing economy without fuelling the very inflation the oil shock is generating,\u201d he said.
Furthermore, this week a US Department of the Treasury update revealed that total US debt has surpassed $40 trillion<\/a> for the first time in history \u2013 two years before expected, as a result of the costs of the war and Trump\u2019s lowering of corporate taxes.
Schneider noted that the US also needs to consider its allies\u2019 economies.
\u201cThe Gulf states and the East Asian economies are the hardest hit by this war, and they are also among the largest holders of US assets,\u201d he said.
On Wednesday night, Trump also warned<\/a> that any country whose \u201cfinancial institutions, businesses, airports, or government entities\u201d aid Tehran will face \u201cTREMENDOUS Economic Consequences\u201d.
Hours earlier, the UAE, a longtime trade hub for Iran, announced an indefinite embargo after accusing Iran of firing missiles at its territory, a move analysts called significant given Iran\u2019s reliance on Emirati financial access.
\u201cAs the Gulf draws down reserves and reconsiders where it deploys its sovereign wealth, and as Japan strains under its own currency pressures, the marginal buyers of American debt are pulling back at precisely the moment Washington most needs them,\u201d he added.<\/p>\n

The war on Iran,<\/a> which the Trump administration can\u2019t seem to bring to an end, is increasingly unpopular in the US.
Now, there are just a few weeks to go before pivotal midterm elections in November determine whether his Republican Party can keep control of Congress.
US Senator Mark Warner, vice chairman of the Senate Intelligence Committee, criticised ongoing US involvement in the conflict with Iran in a post on X on Thursday.
\u201cWhen will Trump walk away from this disastrous and deadly war?\u201d he asked.