How conflict is making life more expensive for Iranians

President Trump announced on August 18, 2026, what he described as "the most crushing economic operation ever taken against any country" targeting Iran, aiming to escalate pressure beyond existing sanctions. This move came after a 60-day ceasefire expired without diplomatic resolution to the war initiated by the US and Israel in February. Iran's military has signaled a shift towards more aggressive offensive operations, threatening retaliation against Gulf states like the United Arab Emirates (UAE) that assist the U.S. In response, the UAE halted all trade and financial dealings with Iran following accusations of missile attacks on August 18. Treasury Secretary Scott Bessent later detailed new sanctions targeting five key economic areas: digital assets, technology, gold, aviation, and shipping, aiming to cut off Iran's remaining economic lifelines globally, while China remains a major concern due to its significant trade ties with Iran.